Question
Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $46 to buy from farmers and $20 to crush in
Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $46 to buy from farmers and $20 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 $22 or processed further for $14 to make the end product industrial fiber that is sold for $34. The beet juice can be sold as is for $42 or processed further for $40 to make the end product refined sugar that is sold for $80. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? |
rev: 08_07_2013_QC_33489
$(29)
$(2)
$(18)
$(60)
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