Badal Corporation processes sugar beets in batches. A batch of sugar beets costs $55 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 $20 or processed further for $16 to make the end product industrial fiber that is sold for $53. The beet juice can be sold as is for $33 or processed further for $23 to make the end product refined sugar that is sold for $60. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?
A) ($20)
B) $21
C) $1
D) ($112)
Correct Answer:
Verified
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