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 $50.
-How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?
A)$(34)
B)$(11)
C)$(26)
D)$(57)

Question

Quizplus · Accepted Answer

The additional profit from processing beet juice into refined sugar is calculated as follows: Selling beet juice as is yields $32. Processing it further costs $29 and results in refined sugar sold for $50. The additional profit is $50 - $29 - $32 = -$11, indicating a loss of $11.

Duarte Corporation Processes Sugar Beets That It Purchases from Farmers