Question
Gierlach Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $53 to buy from farmers and $15 to crush in
Gierlach Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $53 to buy from farmers and $15 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 $29 or processed further for $21 to make the end product industrial fiber that is sold for $41. The beet juice can be sold as is for $49 or processed further for $33 to make the end product refined sugar that is sold for $75. 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?
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