Galluzzo Corporation Processes Sugar Beets in Batches

question 68

Multiple Choice

Galluzzo Corporation processes sugar beets in batches.A batch of sugar beets costs $51 to buy from farmers and $14 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 $18 to make the end product industrial fiber that is sold for $45.The beet juice can be sold as is for $41 or processed further for $21 to make the end product refined sugar that is sold for $62.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)$(104)
• B)$(4)
• C)$7
• D)$3

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