Swagger Corporation Purchases Potatoes from Farmers

question 81

Essay

Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $63 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $29 or processed further for $15 to make the cocktail of nutrients that are sold for $41. The depeeled spuds can be sold as is for $40 or processed further for $22 to make frozen french fries that are sold for $77.Required:a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries?b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product?

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Definitions:

Formalize

The act of expressing an idea, argument, or process in a precise, often mathematical or logical, form.

Hypothetical Syllogism

A logical argument with two conditional statements followed by a conclusion that infers from the antecedent of one statement to the consequence of the other.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which states something about categories of things.

Hypothetical

Based on or serving as a hypothesis, a supposed but unproven premise or supposition used as the basis for further reasoning.