Question: Stineheffer Beet Processors, Inc. processes sugar beets in batches. A batch of sugar beets costs $44 to buy from farmers and $18 to crush in
Stineheffer Beet Processors, Inc. processes sugar beets in batches. A batch of sugar beets costs $44 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, bet fiber and beetjuice, emerge from the crushing process. The beetfiber can be sold as is for $20 or processed further for $12 to make the end product industrial fiber that is sold for $32. The beetjuice can be sold as is for $40 or processed further for $42 to make the end product refined sugar that is sold for $78. What is the financial advantage (disadvantage for the company from processing the intermediate product beetjuice into refined sugar rather than selling it as is? O O O O
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