Chrisjohn Beet Processors, Inc

question 80

Multiple Choice

Chrisjohn Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $51 to buy from farmers and $16 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 $23 or processed further for $18 to make the end product industrial fiber that is sold for $47. The beet juice can be sold as is for $46 or processed further for $20 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?

• A) ($74)
• B) ($23)
• C) ($7)
• D) ($41)

Understand the concept of break-even point in units and dollars.

Apply the break-even analysis to different sales mixes and product scenarios.

Calculate the effect of changes in fixed and variable costs on the break-even point.

Interpret cost-volume-profit (CVP) charts and understand their significance.

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Definitions:

Ethical Egoism

A philosophical stance suggesting that actions are morally right if they promote the individual's own best interest.

Benefit Me

Refers to advantages or positive outcomes that accrue to an individual's favor or interest.

Antiracist Appropriation

The act of adopting elements of a culture by those who actively oppose racism, with the intention of showing solidarity or respect, though it can sometimes lead to controversy over authenticity or ownership.