#23

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.

Which of the intermediate products should be processed further?

Garrison 16e Rechecks 2017-09-13, 2017-11-11

Multiple Choice

beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar

beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar

beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar

beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar