Question

Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $91 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 $48 or processed further for $38 to make the end product, industrial fiber that is sold for $86. The beet juice can be sold as is for $67 or processed further for $45 to make the end product, refined sugar that is sold for $134. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar

Answer 1

$29

Step-by-step explanation:

The computation of the more profit or loss via processing one batch of sugar to the end products is shown below:

= Total sale in the case when it is processed further - processing cost

where,

Total sale in the case when it is processed further is

= $86 + $134

= $220

And, the processing cost is

= $91 + $17 + $38 + $45

= $191

So, the profit is

= $220 - $191

= $29