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A company purchases strawberries from strawberry growers. The strawberries are then washed and sorted, producing two intermediate products- whole berries and strawberry mash (from
A company purchases strawberries from strawberry growers. The strawberries are then washed and sorted, producing two intermediate products- whole berries and strawberry mash (from the berries that aren't perfect). The whole berries can then be processed further to make sliced strawberries. And the strawberry mash can be processed further to make healthy strawberry popsicles. A batch of strawberries costs $42 to buy from the growers and $12 to wash and sort in the company's plant. The whole berries produced from a batch can be sold as is for $24 or processed further for $17 to make the sliced strawberries that are sold for $44. The strawberry mash can be sold as is for $35 or processed further for $24 to make frozen strawberry popsicles that are sold for $56. Required: a. Assuming that no other costs are involved in processing strawberries or in selling products, how much money does the company make from processing one batch of strawberries into the sliced strawberries and the frozen strawberry popsicles? b. Should each of the intermediate products, whole strawberries and strawberry mash, be sold as is or processed further into an end product? Complete this question by entering your answers in the tabs below. Required A Required B Assuming that no other costs are involved in processing strawberries or in selling products, how much money does the company make from processing one batch of strawberries into the sliced strawberries and frozen strawberry popsicles? < Required A Required B >
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