Question
show all steps Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs
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Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $60 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 $40 or processed further for $19 to make the end product industrial fiber that is sold for $58. The beet juice can be sold as is for $21 or processed further for $23 to make the end product refined sugar that is sold for $58.
Required:
1)- How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? 2)- How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? 3)-Which of the intermediate products should be processed further?
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