Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of suga

Question

Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 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 $32 or processed further for $24 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $52 or processed further for $32 to make the end product refined sugar that is sold for $78. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?

$(6)

$(12)

$(39)

$(60)

$(6)

$(12)

$(39)

$(60)

Explanation / Answer

$(6) Statement showing computations Particulars Amount Sales Price of refined Sugar                        78.00 Cost of Beet Juice                      (52.00) Cost of further processing                      (32.00) Income(Loss)                        (6.00)

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