Gierlach Beet Processors, Inc., processes sugar beets in buches. A buch of sugar

Question

Gierlach Beet Processors, Inc., processes sugar beets in buches. A buch of sugar beets costs $44 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and bet juice, emerge from the crushing process. The beet fiber 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 been juice can be sold as is for $40 or processed further for $42 to make the end product refined sugar that is sold for $78. 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? Palomo Corporation sells a product for $100 per unit. The product's current sales are 12,100 units and its break-even sales are 10,406 units. The margin of safety as a percentage of sales is closest to: Frank Corporation manufactures a single product that has a selling price of $25,00 per unit. Fixed expenses total $52,000 per year, and the company must sell 6,500 units to break even. If the company has a target profit of $15,000, sales in units must be: Given the following data: The residual income would be:

Explanation / Answer

23.

24.

Current Sales A        12,100 Break Even Sells B        10,406 Margin of Safety C=A-B          1,694 Margin of safety as a % of Sales (C/A)*100             14%

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