Question: Amazon processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $31 to buy from
Amazon processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $31 to buy from farmers and $15 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 $27 or processed further for $14 to make the end product industrial fiber that is sold for $44 The beet juice can be sold as is for $20 or processed further for $32 to make the end product refined sugar that is sold for $58 . How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?
a.
$6.00
b.
$38.00
c.
$26.00
d.
$-12.00
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