Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $40 to buy from farmers and $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 $20 or processed further for $12 to make the end product industrial fiber that is sold for $32. The beet juice can be sold as is for $40 or processed further for $38 to make the end product refined sugar is sold for $74. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? A. ($27) B. ($60) C. ($4) D. ($10)

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Chapter10: Short-term Decision Making
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Coakley Beet Processors, Inc., processes sugar beets in batches. A batch
of sugar beets costs $40 to buy from farmers and $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
$20 or processed further for $12 to make the end product industrial
fiber that is sold for $32. The beet juice can be sold as is for $40 or
processed further for $38 to make the end product refined sugar is sold
for $74.
How much profit (loss) does the company make by processing the
intermediate product beet juice into refined sugar rather than selling
it as is?
A. ($27)
B. ($60)
C. ($4)
D. ($10)
Transcribed Image Text:Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $40 to buy from farmers and $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 $20 or processed further for $12 to make the end product industrial fiber that is sold for $32. The beet juice can be sold as is for $40 or processed further for $38 to make the end product refined sugar is sold for $74. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is? A. ($27) B. ($60) C. ($4) D. ($10)
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