TB MC Qu. 11-165 Boney Corporation processes sugar beets ...

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $50 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 $18 or processed further for $17 to make the end product industrial fiber that is sold for $62. The beet juice can be sold as is for $45 or processed further for $21 to make the end product refined sugar that is sold for $62.

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?

Brewer_8e_Rechecks_2019_10_10

Multiple Choice

• ($73) per batch

• ($4) per batch

• ($35) per batch

• ($23) per batch