Crooks Corporation processes sugar beets in batches that it purchases from farme

Question

Crooks Corporation processes sugar beets in batches that it purchases from farmers for $57 a batch. A batch of sugar beets costs $12 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 $28 or processed further for $17 to make the end product industrial fiber that is sold for $67. The beet juice can be sold as is for $39 or processed further for $24 to make the end product refined sugar that is sold for $54. Which of the intermediate products should be processed further?

A. beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar

B. beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar

C. beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar

D. beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar

Explanation / Answer

B. beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar

Beet Fibre:

Beet Fiber sold as it is : $28

Beet fibre sold as Industrial fiber = -17 + 67 = $40

Beet Juice:

Beet juice aold as it is : $39

Beet Juice asold as refine sugar : -$24 + $54 = $30

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