Question
Piteo Corporation purchases sweet potatoes from farmers. The sweet potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be
Piteo Corporation purchases sweet potatoes from farmers. The sweet potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen sweet potatoes french fries. A batch of sweet potatoes costs $41 to buy from farmers and $11 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $23 or processed further for $16 to make the cocktail of nutrients that are sold for $43. The depeeled spuds can be sold as is for $34 or processed further for $23 to make frozen french fries that are sold for $55.
how much money would the company make from processing one batch of sweet potatoes into the cocktail of organic nutrients and frozen sweet potatoes french fries?
What is the financial advantage (disadvantage) on the sweet potatoes cocktail of organic and frozen sweet potatoes french fries?
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