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Bowdish Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further

Bowdish Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $44 to buy from farmers and $14 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $26 or processed further for $19 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 to make frozen french fries that are sold for $58.

Required:

a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries?

b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product?

peels (for producing cocktail and organic nutrients)

depeeled spuds (to make frozen french fries)

image text in transcribed

and depeeled spuds. The peels can then be processed further to make a cocktal and $14 to peel in the company's plant. The peels produced for $26 or processed further for $19 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 of organic nutinients And the depeeied can be processed Required urig tat no oner costs are moved n processrg potatoes or in Seling products, how much, money does une company make from processrg batch of potatoes ito Pe naoforgare nutri

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