Question
Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 to crush in
Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 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 $32 or processed further for $24 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $52 or processed further for $32 to make the end product refined sugar that is sold for $78. 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
$60
($39)
$12
($6)
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