Sohr Corporation Processes Sugar Beets That It Purchases from Farmers

question 63

Multiple Choice

Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $50 to buy from farmers and $15 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 $20 or processed further for $19 to make the end product industrial fiber that is sold for $58. The beet juice can be sold as is for $41 or processed further for $23 to make the end product refined sugar that is sold for $58.
-How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

• A)$(107)
• B)$(4)
• C)$9
• D)$13

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Definitions:

Benchmarking

A systematic approach to identifying the activities with the greatest room for improvement. It is based on comparing the performance in an organization with the performance of other, similar organizations known for their outstanding performance.

Business Process

A series of steps that are followed to carry out some task in a business.

Output Capacity

The maximum amount of goods or services a company can produce in a given period under normal working conditions.

Maximum Weekly Output

The highest quantity of goods or services that can be produced or delivered by a company or facility in a week, given resource and operational constraints.