Vannorman Corporation Processes Sugar Beets in Batches

question 100

Multiple Choice

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 rather than not processing that batch at all?

• A) ($134)
• B) ($32)
• C) $7
• D) $39

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Definitions:

National Occupational Classification

A standardized system that categorizes and describes occupations according to skill levels and skill types in the Canadian labor market.

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The department within an organization responsible for managing recruitment, training, employee relations, and benefits.

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Can refer to the National Occupational Classification, a system categorizing and describing occupations.

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