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

---

Definitions:

Product Specifications

A detailed description of the technical aspects, features, and constraints of a product.

Upper Class Hotels

Hotels that offer luxurious accommodations, high-quality services, and numerous amenities, targeting travelers seeking premium experiences.

Buying Center

A group of individuals within an organization who are responsible for making purchasing decisions.

Submit Formal Proposals

The process in business where detailed, formal documents are presented for evaluation, outlining the terms of a project, product, or service offer, often as part of a bidding process.