Kosakowski Corporation Processes Sugar Beets in Batches

question 80

Multiple Choice

Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $66 to buy from farmers and $17 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 $13 to make the end product industrial fiber that is sold for $36. The beet juice can be sold as is for $42 or processed further for $20 to make the end product refined sugar that is sold for $84. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

• A)$(18)
• B)$4
• C)$22
• D)$(116)

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Definitions:

Treasury Stock

Equities that were first made available for purchase and later retrieved by the company, thereby reducing the volume of shares accessible for investment.

Paid-In Capital

Funds raised by a company from investors in exchange for stock, representing the capital provided by shareholders through the purchase of shares.

Reissuance

The process of selling previously issued securities, often shares that have been bought back by the company.

Treasury Stock

Shares repurchased by the issuing company, reducing the amount of outstanding stock on the open market.