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vladimir1956
1 month ago
11

Vannorman Corporation processes sugar beets in batches. A batch of sugar beets costs $78 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 $25 or processed further for $16 to make the end product industrial fiber that is sold for $57. The beet juice can be sold as is for $39 or processed further for $22 to make the end product refined sugar that is sold for $84. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?
Mathematics
1 answer:
zzz [12.3K]1 month ago
7 0

Answer:

The outcomes are listed below.

Step-by-step explanation:

Only the differential costs will be considered. Therefore, the costs associated with sugar beets and their processing are not relevant to the decision.

Beet fiber:

Sold as is for $25

Continued processing yields = 57 - 16= $41

It is more favorable to further process the beet fiber.

Beet juice:

Sold as is for $39

Continued processing yields = 84 - 22= $62

Continuing the processing of beet juice is also more advantageous.

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