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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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e7A. aCCounting ConneCtion ▶ Beef Products, Inc., processes cattle. It can sell the meat as sides of beef or process it further into final cuts (steaks, roasts, and hamburger). As part of the company’s strategic plan, management is looking for new markets for meat or meat by-products. The production process currently separates hides and bones for sale to other manufacturers. However, management is considering whether it would be profitable to process the hides into leather and the bones into fertilizer. The costs of the cattle and of transporting, hanging, storing, and cutting sides of beef are $100,000. The company’s accountant provided these data:
Sales Revenue if Sold at Split-off
Sales Revenue if Sold After Further processing
Additional processing Costs
Meat                       $100,000                                $200,000                                 $80,000
Bones                         20,000                                    40,000                                   25,000
Hides                          50,000                                    60,000                                     5,000
 Should the products be processed further? Explain your answer.
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