Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $13 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 $24 or processed further for $12 to make the end product industrial fiber that is sold for $31. The beet juice can be sold as is for $43 or processed further for $29 to make the end product refined sugar that is sold for $91. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is? Multiple Choice $19 $6 ($50) ($16)

Respuesta :

Answer:

$19

Explanation:

The computation of the financial advantage (disadvantage) for processing the product into another is shown below:

= Selling price of refined sugar - further processing cost - selling price without any other cost involved\

= $91 - $29 - $43

= $19

The other information which is given in the question is not related to the computation part. Hence, we ignored it