Isaac Corporation Processes Sugar Beets in Batches That It Purchases

question 56

Multiple Choice

Isaac Corporation processes sugar beets in batches that it purchases from farmers for $47 a batch. A batch of sugar beets costs $14 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 $22 or processed further for $13 to make the end product industrial fiber that is sold for $42. The beet juice can be sold as is for $45 or processed further for $27 to make the end product refined sugar that is sold for $67. Which of the intermediate products should be processed further?

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