20 Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugarbeets costs $44 to buy from farmers and $15 to crush in the company's plant. Two intermediate products, beet fiber and beetjuice, emerge from the crushing process. The beet fiber can be sold as is for $20 or processed further for $19 to make the endproduct industrial fiber that is sold for $52. The beet juice can be sold as is for $35 or processed further for $23 to make the endproduct refined sugar that is sold for $52.What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refinedsugar rather than selling it as is?COO ($39)O ($65)O ($21)O ($6)

Important data is as follows: Final sales value is $52 The sales value at the split off point is $35…

Answered: What is the financial advantage…

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? O ($39) O ($65) O ($21) O ($6)

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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

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Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 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 $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79. 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?
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $59 to buy from farmers and $18 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 $29 or processed further for $27 to make the end product industrial fiber that is sold for $75. The beet juice can be sold as is for $50 or processed further for $31 to make the end product refined sugar that is sold for $75. 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 O $15 per batch $16 per batch ($4) per batch ($135) per batch
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