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Stinehelfer Beet Processors, Inc., processes sugar beets in batches.

A batch of sugar beets costs $56 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 $24 or processed further for $12 to make the end product industrial fiber that is sold for $31.

The beet juice can be sold as is for $43 or processed further for $29 to make the end product refined sugar that is sold for $91.

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?

Respuesta :

Answer:

$19

Explanation:

The computation of the financial advantage or disadvantage is shown below:

= Sale value after processed further - cost of processed further - sale value without processed further

= $91 - $29 - $43

= $19

Simply we deducted the cost of processed further and the sale value without processed further from the Sale value after processed further so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

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