Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $41 to buy from farmers and $10 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 $15 or processed further for $14 to make the end product industrial fiber that is sold for $53. The beet juice can be sold as is for $36 or processed further for $18 to make the end product refined sugar that is sold for $53.

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?

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• ($35)

• ($20)

• ($1)

• ($61)