Gierlach Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $27 to buy from farmers and $17 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 $27 or processed further for $14 to make the end product industrial fiber that is sold for $34. The beet juice can be sold as is for $32 or processed further for $29 to make the end product refined sugar that is sold for $58. How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?

Question

Kathleen Cowan

Business

17 April, 08:23

Gierlach Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $27 to buy from farmers and $17 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 $27 or processed further for $14 to make the end product industrial fiber that is sold for $34. The beet juice can be sold as is for $32 or processed further for $29 to make the end product refined sugar that is sold for $58. How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?

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Answers (1)

Know the Answer?

Zoe Barrera · Answer 1

loss is $3

Explanation:

given data

sugar sold = $58

juice sold = $32

make cost = $29

to find out

How much more profit (loss) does the company make by processing

solution

we get here Profit on processing the intermediate product Juice that is we get first we get Selling Price that is

Selling Price = sugar sold - juice sold

Selling Price = $58 - $32

Selling Price = $26

and cost of making is $29

so here profit is = selling price - cost price

profit = $26 - $29

profit = - $3

so loss is $3