Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Green Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $43 to buy from farmers and $14 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 $19 or processed further for $18 to make the end product industrial fiber that is sold for $51. The beet juice can be sold as is for $34 or processed further for $22 to make the end product refined sugar that is sold for $51.

Required:
What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar?

Sagot :

Answer:

Financial advantage $5

Explanation:

The computation of the financial advantage (disadvantage) for the company is shown below:

Combined sales value ($51 + $51) $102

Less: further processing ($18 + $22) -$40

Sugar beets cost -$43

Cost to crush -$14

Financial advantage $5

We simply deduct all cost from the revenue so that the financial advantage or disadvantage could come

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.