Duarte Corporation Processes Sugar Beets That It Purchases from Farmers

question 170

Multiple Choice

Duarte Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $31 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 $27 or processed further for $14 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $32 or processed further for $29 to make the end product refined sugar that is sold for $50.
-Which of the intermediate products should be processed further?

• A)beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar
• B)beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar
• C)beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar
• D)beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar

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Definitions:

Availability Heuristic

Availability Heuristic is a mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Functional Thinking

A cognitive approach focusing on the practical and utilitarian aspects of problem-solving and decision-making.

Divergent

Characterized by moving or extending in different directions from a common point or deviating from a conventional pattern.