Question: Shiner Bock Hemp Processors, Inc., processes hemp in batches. A batch of hemp costs $43 to buy from farmers and $17 to crush in the
Shiner Bock Hemp Processors, Inc., processes hemp in batches. A batch of hemp costs $43 to buy from farmers and $17 to crush in the company's plant. Two intermediate products, hemp fiber and hemp juice, emerge from the crushing process. The hemp fiber can be sold as is for $19 or processed further for $11 to make the end product industrial fiber that is sold for $31. The juice can be sold as is for $39 or processed further for $41 to make the end product refined hemp Juice that is sold for $77. What is the financial advantage (disadvantage) for the company from processing the intermediate product hemp Juice into refined hemp Juice rather than selling it as is
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