Question
Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $62 to buy
Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $62 to buy from farmers and $21 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 $32 or processed further for $33 to make the end product industrial fiber that is sold for $81. The beet juice can be sold as is for $53 or processed further for $37 to make the end product refined sugar that is sold for $81. |
How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? |
A. $(153)
B. $(4)
C. $9
D. $19
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