Question
Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $39 to buy from farmers and $13 to crush in
Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $39 to buy from farmers and $13 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 $21 or processed further for $13 to make the end product industrial fiber that is sold for $33. The beet juice can be sold as is for $41 or processed further for $37 to make the end product refined sugar that is sold for $73. 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
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($28)
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$60
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($5)
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$8
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