estion Completion Status: QUESTION 14 company\'s plant. Two intermediate product
ID: 2596012 • Letter: E
Question
estion Completion Status: QUESTION 14 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 $23 or processed further for $18 to make the end product industrial fiber that is sold for $47. The beet juice can be sold as is for $46 or processed further for $20 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? A. ($74) Yoke Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $51 to buy from farmers and $16 to crush in the B.($23) ° C. ($7) D. ($41)Explanation / Answer
Solution:-
As Beet juice can be sold for $46 as it is, but we are not selling it as it is and processing it further, it means we are giving away the benefit of getting $46.
Now Cost of Processing Beet Juice further = $20
Total Cost = $46 + $20 = $66
Selling Price After Processing = $59
Loss = $59 - $66 = $(7)
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