Stinehelfer Beet Processors, Incorporated, Processes Sugar Beets in Batches

question 294

Multiple Choice

Stinehelfer Beet Processors, Incorporated, processes sugar beets in batches. A batch of sugar beets costs $45 to buy from farmers and $19 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 $21 or processed further for $13 to make the end product industrial fiber that is sold for $33. The beet juice can be sold as is for $41 or processed further for $39 to make the end product refined sugar that is sold for $79. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

• A) ($28)
• B) $60
• C) ($1)
• D) $18

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Definitions:

Behavior Frequency

The count of how often a specific behavior or action is performed over a set period of time.

Variable Ratio Schedule

A reinforcement schedule in which the number of responses required for a reward varies, often leading to high and steady rates of response.

Commission

A form of payment or an instruction to perform a particular task or service, often based on a percentage of sales made.

Sale

The exchange of a commodity for money; the action of selling something.