Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $40 to buy from farmers and $11 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 $16 or processed further for $15 to make the end product industrial fiber that is sold for $52. The beet juice can be sold as-is for $35 or processed further for $19 to make the end product refined sugar that is sold for $52.

What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

Noreen_5e_Rechecks_2019_10_10

Multiple Choice

• ($61)
• ($2)
• ($31)
• ($21)