Chrisjohn Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $51 to buy from farmers and $16 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 $23 or processed further for $18 to make the end product industrial fiber that is sold for $47. The beet juice can be sold as is for $46 or processed further for $20 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?
A) ($74)
B) ($23)
C) ($7)
D) ($41)

Question

Quizplus · Accepted Answer

The additional profit from processing beet juice into refined sugar is $59 - $46 - $20 = -$7, indicating a loss of $7.