Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $39 to buy from farmers and $13 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 $21 or processed further for $13 to make the end product industrial fiber that is sold for $33. The beet juice can be sold as is for $41 or processed further for $37 to make the end product refined sugar that is sold for $73. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• ($28)

• $60

• ($5)

• $8