Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $65 to buy from farmers and $24 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 $35 or processed further for $39 to make the end product industrial fiber that is sold for $87. The beet juice can be sold as is for $56 or processed further for $43 to make the end product refined sugar that is sold for $87. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all? Multiple Choice: ● ● ● ($4) per batch ($171) per batch $3 per batch $22 per batch
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $65 to buy from farmers and $24 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 $35 or processed further for $39 to make the end product industrial fiber that is sold for $87. The beet juice can be sold as is for $56 or processed further for $43 to make the end product refined sugar that is sold for $87. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all? Multiple Choice: ● ● ● ($4) per batch ($171) per batch $3 per batch $22 per batch
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Boney Corporation processes sugar
beets that it purchases from farmers.
Sugar beets are processed in batches.
A batch of sugar beets costs $65 to
buy from farmers and $24 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 $35
or processed further for $39 to make
the end product industrial fiber that is
sold for $87. The beet juice can be sold
as is for $56 or processed further for
$43 to make the end product refined
sugar that is sold for $87.
What is the financial advantage
(disadvantage) for the company from
processing one batch of sugar beets
into the end products industrial fiber
and refined sugar rather than not
processing that batch at all?
Multiple Choice:
●
($4) per batch
($171) per batch
$3 per batch
$22 per batch
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