CUNY Login Chapter 10 Hw ? o a ? ezto.mheducation.com/hm.tpx velue: 10.00 points
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Question
CUNY Login Chapter 10 Hw ? o a ? ezto.mheducation.com/hm.tpx velue: 10.00 points (Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major processor of beef and other meat products. The company has a large amount of T-bone steak on hand, and it is trying to decide whether to sell the T-bone steaks as they are initially cut or to process them further into filet mignon and the New York cut. If the T-bone steaks are sold as initially cut, the company figures that a 1-pound T-bone steak would yield the following prof: Selling price ($2.20 per pound) Less joint costs incurred up to the split-off point where 2.20 1.30 $ 0.90 T-bone steak can be identified as a separate product Profit per pound As mentioned above, instead of being sold as initially cut, the T-bone steaks could be further processed into filet mignon and New York cut steaks. Cutting one side of a T bone steak provides the filet mignon, and cutting the other side provides 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 remaining ounces are waste. The cost of processing the T-bone steaks into these cuts is S0.12 per pound. The ilet mignon can be sold for $3.60 per pound, and the New York cut can be sold for $3.20 per pound, Required 1. Determine the profit per pound from processing the T-bone stoaks into filet mignon and New York cut steaks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Sales from further processing Sales price of one filet mignon Sales price of one New York cut Total revenue from further processing Less sales revenue from one T-bone steak ncremental revenue from further processing Less cost of further processing Profit(loss) per pound from further processing O Type here to searchExplanation / Answer
per 16 ounce T bone sales from further processing sale price of one Filet mignon 3.6 sale price of new york out 3.2 Total revenue from further processing 6.8 less:sale revenue from one one T bone steak (2.2) Incremental revenue from further processing 4.6 less:cost of further processing (.12) Profit /(loss) 4.48