Prevatte Corporation Purchases Potatoes from Farmers

question 130

Essay

Prevatte 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 $45 to buy from farmers and $11 to peel in the company's plant.The peels produced from a batch can be sold as is for animal feed for $27 or processed further for $16 to make the cocktail of nutrients that are sold for $47.The depeeled spuds can be sold as is for $38 or processed further for $27 to make frozen french fries that are sold for $59.
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? Show your work!
b.Should each of the intermediate products,peels and depeeled spuds,be sold as is or processed further into an end product? Explain.

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Definitions:

Automated Services

Services operated or delivered by automated systems or machines, reducing the need for human intervention.

Contract Employment

A form of employment where the employee is hired for a specified duration or for a specific project with a defined end date.

Ethical Practices

Behaviors and decisions within a business context that are guided by principles and values considered to be morally right and fair.

Diversity Management

The practice of acknowledging, understanding, appreciating, and leveraging differences among individuals in the workplace to create an inclusive environment.