Question
Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $47 to buy
Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $47 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 $59. The beet juice can be sold as is for $42 or processed further for $18 to make the end product refined sugar that is sold for $59. |
How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? |
A. $(67)
B. $(1)
C. $(35)
D. $(20)
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