Products industrial fiber and refined sugar


Problem:

Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $48 to buy from farmers and $34 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 $18 or processed further for $44 to make the end product industrial fiber that is sold for $107. The beet juice can be sold as is for $66 or processed further for $48 to make the end product refined sugar that is sold for $107.

Required:

How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

  • $32
  • $40
  • $(174)
  • $(4)

Note: Please show the work not just the answer.

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Accounting Basics: Products industrial fiber and refined sugar
Reference No:- TGS0883208

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