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Vannorman Corporation Processes Sugar Beets in Batches

Question 203

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Vannorman Corporation processes sugar beets in batches.A batch of sugar beets costs $78 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 $25 or processed further for $16 to make the end product industrial fiber that is sold for $57.The beet juice can be sold as is for $39 or processed further for $22 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?


A) $(134)
B) $(32)
C) $7
D) $39

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