Stinehelfer Beet Processors, Incorporated, Processes Sugar Beets in Batches

question 132

Multiple Choice

Stinehelfer Beet Processors, Incorporated, processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $13 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 $24 or processed further for $12 to make the end product industrial fiber that is sold for $31. The beet juice can be sold as is for $43 or processed further for $29 to make the end product refined sugar that is sold for $91. 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) $19
• B) $6
• C) ($50)
• D) ($16)

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