Stinehelfer Beet Processors,Inc

question 114

Multiple Choice

Stinehelfer Beet Processors,Inc.,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)