Boney Corporation Processes Sugar Beets That It Purchases from Farmers

question 74

Multiple Choice

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 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 $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?

• A) $15 per batch
• B) ($14) per batch
• C) ($117) per batch
• D) $1 per batch

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Definitions:

Muscle Mass

The total weight of muscle in the body, an important component of overall health and physical fitness.

Fat Mass

The portion of the body's total weight that is made up of fat tissue, important for energy storage, insulation, and protection of organs.

Metabolic Syndrome

A cluster of conditions including increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels, which together increase the risk of heart disease, stroke, and diabetes.

Lipid Levels

The concentrations of fats or fat-like substances in the blood, such as cholesterol and triglycerides, important for assessing cardiovascular risk.