Stinehelfer Beet Processors, Incorporated, Processes Sugar Beets in Batches

Multiple Choice

Stinehelfer Beet Processors, Incorporated, processes sugar beets in batches. A batch of sugar beets costs $45 to buy from farmers and $19 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 $21 or processed further for $13 to make the end product industrial fiber that is sold for $33. The beet juice can be sold as is for $41 or processed further for $39 to make the end product refined sugar that is sold for $79. 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) ($28)
B) $60
C) ($1)
D) $18