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roblem 7-19/ abilene meat processining in…

the company has a large amount of t- bone steak on hand and it is trying to decide the t- bone steak as is or to process them futher into filet and mignon and new York cut steak. management believe that a 1 pound t- bone steak would yield the following profit. wholesale selling price=2.25 cent per pound; less joint costs incurred up to the split point where t bone steak can be identified as separate product.=1.70 cents. profit per pound= 0.55. as mention above instead of being sold as is/ t bone steak could be process into filet mignon and new York cut steak. cutting one side of a t bone provide the filet mignon and cutting the other side provide the new York cut. one 16 ounce t bone steak cut in this way will yield one 6 ounce filet mignon and one 8 ounce new York cut.; the remain ounce are waste.. the cost of processing the t bone steak into these cut is 0. 20 pound. the filet mignon can be sold for 3. 60 per pound and the new York cut can be sold wholesale for 2.90 per pound.. I need to determine the profit per pound from processing the t bone steak further into filet mignon and new York cut steaks.2. would you recommend that the t bone steak be sold as is or processing futher and why/ can u assi me with these question jac dumb

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