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Profit/Loss in selling finished or semi finished product

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Vannorman Corporation processes sugar beets in batches. A batch of sugar beets costs $75 to buy from farmers and $11 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 $11 or processed further for $20 to make the end product industrial fiber that is sold for $65. The beet juice can be sold as is for $38 or processed further for $23 to make the end product refined sugar that is sold for $84. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

$20
($32)
$38
($129)

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Solution Summary

The solution describes the steps in calculating profit/loss if company processes one batch of sugar beets into industrial fiber and refined sugar.

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Solution:

Costs = Cost of sugar beets+ crushing costs +processing cost for ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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