Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $59 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 $29 or processed further for $27 to make the end product industrial fiber that is sold for $75. The beet juice can be sold as is for $50 or processed further for $31 to make the end product refined sugar that is sold for $75. 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 rather than not processing that batch at all? Multiple Choice $15 per batch $16 per batch ($4) per batch ($135) per batch

Essentials of Business Analytics (MindTap Course List)
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Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
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Chapter11: Linear Optimization Models
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Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $59 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 $29 or processed further for $27 to make the end product industrial fiber that is sold for $75. The beet juice can be sold as is
for $50 or processed further for $31 to make the end product refined sugar that is sold for $75.
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 rather than not processing that batch at all?
Multiple Choice
O
$15 per batch
$16 per batch
($4) per batch
($135) per batch
Transcribed Image Text:Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $59 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 $29 or processed further for $27 to make the end product industrial fiber that is sold for $75. The beet juice can be sold as is for $50 or processed further for $31 to make the end product refined sugar that is sold for $75. 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 rather than not processing that batch at all? Multiple Choice O $15 per batch $16 per batch ($4) per batch ($135) per batch
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