Sell or Process Further, Basic Analysis Carleigh, Inc, is a pork processoc its plants, located in the Midwest, produce several products from a common process: sirioin roasts, chops, spare nibs, and the residual. The roasts, chops, and spare ribs are pockaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: The revenues from each product are as follows: sirloin roasts, $66,000; chops, $82,500; spare ribs, $30,500; and residual, $8,600. Carleigh's management has learned that eertain organ meats are a prized delieacy in Asis. They are considering separating those from the residual and selling them abroad for $51,800. This would bring the volue of the residual down to $2,300. In addition, the organ meats would need to be packaged and then air freighted to Asia. Further processing cost per week is estimated to be $25,300 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct labor). Transportation cost would be $11,600 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, recelving, and internal shipping). The increase in resource spending for these activities is entimated to be $3,100 per week. Required: 1. What is the gross profit earned by the original mix of products for one week? 2. Should the company separate the organ meats for shipment oversens or continue to sell them at split-off? What is the effect of the decilion on weelily grous profin? by 5