Answer:
There is no short answer.
Step-by-step explanation:
The T-bone steak is sold at $2.20 per pound with a $0.85 profit for each which means the cost of the T-bone is $1.35 per pound.
If the company decides to cut the T-bone steaks into filet mignons and New York cuts, they get a 6 ounce filet mignon which is 0.375 pound, and an 8 ounce New York cut which is 0.5 pound.
The filet mignon is sold for $4.40 per pound which means that for a 6 ounce piece the company will get $1.65. The New York cut is sold for $3.50 per pound which means that for an 8 ounce piece, the company will get $1.75.
The cost of the T-bone ($1.35) and the processing cost $0.20, the total cost of the final pieces of filet mignon and New York cuts to the company are in total $1.55. The company gets $3.40 by selling the two pieces seperately. This brings their profit to $1.85 which is $0.50 higher than the profit they get from selling the T-bone.
I hope this answer helps.