A stratified sample of 420 market hogs representing the seven 10- pound incremental carcass weight classes from 140 lbs. to 210 lbs. , and the nine last rib back fat classes from less than .8 inches to 1.5 inches, or greater, within each weight class were analyzed to determine carcass value and yield of wholesale cuts. Simple correlation coefficients were calculated between each of the carcass measurements. The carcass yield data were manipulated by multiple regression procedures to achieve a series of equations for predicting the weights of the primal cuts. The benefits of being able to predict the weights of the primal cuts were discussed. A procedure for developing a premium/discount matrix was explained . The fo rmulae for developing the matrix were explained. The necessary assumptions were also explored. A procedure for evaluating a premium/discount matrix was developed. The impact of an industry-wide carcass merit program was discussed.