value: 6.00 points Sohr Corporation processes sugar beets that it purchases from

Question

value: 6.00 points Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $52 to buy from farmers and $11 to crush in the company's plant. Two ntermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $22 or processed further for $13 to make the end product industrial fiber that is sold for $61. The beet juice can be sold as is for $43 or processed further for $26 to make the end product refined sugar that is sold for $61. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? O $(102) O $20 $(4)

Explanation / Answer

Answer is $20.

Explanation is as under:

Industrial Refined Total Fiber Sugar Revenue 61 61 122 Less: Further processing cost 13 26 39 Less: Joint Cost of crushing 63 ($ 52+11) Net Income 20

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