Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $48 to buy from farmers and $13 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 $18 or processed further for $17 to make the end product industrial fiber that is sold for $56. The beet juice can be sold as is for $39 or processed further for $21 to make the end product refined sugar that is sold for $56.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. $(67)
B. $(19)
C. $(35)
D. $(4)


Answer: D

Business

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