Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $37 to buy from farmers and $11 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 $23 or processed further for $15 to make the end product industrial fiber that is sold for $35. The beet juice can be sold as is for $43 or processed further for $35 to make the end product refined sugar that is sold for $71.

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?

Multiple Choice

• ($30)

• $60

• ($7)

• $4