Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $31 to buy from farmers and $15 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 $27 or processed further for $14 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $32 or processed further for $29 to make the end product refined sugar that is sold for $50.
-How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?
A) $(8)
B) $13
C) $(89)
D) $5
Correct Answer:
Verified
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