Asked by Lorena Edanol on Jul 14, 2024

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What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

A) $1 per batch
B) ($17) per batch
C) $19 per batch
D) ($52) per batch

Beet Juice

A liquid extracted from beets, known for its nutritional benefits and potential use in food coloring and health drinks.

Refined Sugar

Sugar that has been processed to remove impurities and is typically found in a granulated form suitable for consumption.

Financial Advantage

The benefit gained in financial terms from a particular action or situation, often measured in terms of profit, savings, or net worth.

  • Investigate the fiscal outcomes tied to the further processing of products after the split-off stage.
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EF
Eseta FinauJul 14, 2024
Final Answer :
C
Explanation :
According to the information provided, the cost of processing the intermediate product beet juice into refined sugar is $100 per batch while the revenue from selling the refined sugar is $119 per batch. This means that the financial advantage for the company from processing the beet juice into refined sugar is $19 per batch ($119 - $100). Therefore, it is financially advantageous for the company to process the intermediate product beet juice into refined sugar rather than selling it as is.
Explanation :
  The company earns a profit of $19 a unit by processing the intermediate product beet juice into refined sugar rather than selling it as is. The company earns a profit of $19 a unit by processing the intermediate product beet juice into refined sugar rather than selling it as is.