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Sweet Beet Processors, Inc., buys a batch of sugar beets from farmers at a cost of $27 and then crushes the batch for $17
Sweet Beet Processors, Inc., buys a batch of sugar beets from farmers at a cost of $27 and then crushes the batch for $17 in the company's plant. Two products, beet juice and beet fiber, emerge after crushing. The beet juice can be sold as is for $32, or processed further for an additional $29 cost to make the end product refined sugar that can be sold for $58. The beet fiber can be sold as is for $27 or can be processed further for an additional $5 cost to make the end product industrial fiber that can be sold for $34. Show detailed computations for chance at partial credit. A. If beet juice is processed further, how much more (less) operating income will company have than if beet juice is sold as is? Indicate amount and whether such amount results in more (or less) net operating income. B. If beet fiber is processed further, how much more (less) operating income will company have than if beet fiber is sold as is? Indicate amount and whether such amount results in more (or less) net operating income.
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