Question
GHL Corporation purchases apples from farmers. The apples are then skinned, producing two intermediate products-skins and deskinned apples. The skins can then be processed further
GHL Corporation purchases apples from farmers. The apples are then skinned, producing two intermediate products-skins and deskinned apples. The skins can then be processed further to make a mixture of organic nutrients. And the deskinned apples can be processed further to make apple sauce. A batch of apples costs $46 to buy from farmers and $14 to skin in the company's plant. The skins produced from a batch can be sold as is for animal feed for $28 or processed further for $19 to make the mixture of nutrients that are sold for $48. The deskinned apples can be sold as is for $39 or processed further for $28 to make apple sauce that is sold for $60. Required: a. Assuming that no other costs are involved in processing apples or in selling products, how much money does the company make from processing one batch of apples into the mixture of organic nutrients and apple sauce? b. Should each of the intermediate products, skins and deskinned apples, be sold as is or processed further into an end product?
(8 marks) GHL Corporation purchases apples from farmers. The apples are then skinned, producing two intermediate products-skins and deskinned apples. The skins can then be processed further to make a mixture of organic nutrients. And the deskinned apples can be processed further to make apple sauce. A batch of apples costs $46 to buy from farmers and $14 to skin in the company's plant. The skins produced from a batch can be sold as is for animal feed for $28 or processed further for $19 to make the mixture of nutrients that are sold for $48. The deskinned apples can be sold as is for $39 or processed further for $28 to make apple sauce that is sold for $60. Required: a. Assuming that no other costs are involved in processing apples or in selling products, how much money does the company make from processing one batch of apples into the mixture of organic nutrients and apple sauce? b. Should each of the intermediate products, skins and deskinned apples, be sold as is or processed further into an end product? Complete this question by entering your answers in the tabs below. Assuming that no other costs are involved in processing apples or in selling products, how much money does the company make from processing one batch of apples into the mixture of organic nutrients and apple sauce? (8 marks) GHL Corporation purchases apples from farmers. The apples are then skinned, producing two intermediate products-skins and deskinned apples. The skins can then be processed further to make a mixture of organic nutrients. And the deskinned apples can be processed further to make apple sauce. A batch of apples costs $46 to buy from farmers and $14 to skin in the company's plant. The skins produced from a batch can be sold as is for animal feed for $28 or processed further for $19 to make the mixture of nutrients that are sold for $48. The deskinned apples can be sold as is for $39 or processed further for $28 to make apple sauce that is sold for $60. Required: a. Assuming that no other costs are involved in processing apples or in selling products, how much money does the company make from processing one batch of apples into the mixture of organic nutrients and apple sauce? b. Should each of the intermediate products, skins and deskinned apples, be sold as is or processed further into an end product? Complete this question by entering your answers in the tabs below. Should each of the intermediate products, skins and deskinned apples, be sold as is or processed further into an end product? (Negative amounts should be indicated by a minus sign.)Step by Step Solution
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