Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $41 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 $19 or processed further for $11 to make the end product industrial fiber that is sold for $31. The beet juice can be sold as is for $39 or processed further for $39 to make the end product refined sugar that is sold for $75. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

Garrison 16e Rechecks 2017-12-15

Multiple Choice

($3)

$12

($26)

$60