[gencampos]

TB 116 Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $50 to buy from farmers and $15 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 $20 or processed further for $19 to make the end product industrial fiber that is sold for $58. The beet juice can be sold as is for $41 or processed further for $23 to make the end product refined sugar that is sold for $58.

How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

[gencampos]

so I got $9 as my answer, I don't know if its correct I did the following: I added 20+19=49 then I subtracted 49 from 58 which is the price the industrial beet fiber would sell at after a finished product.

[ArcSine]

You got the right answer, but your process explanation suggests it may have been a fortunate coincidence. (And how much is 20 + 19 again? :-))

Come at it this way: First tally up the total costs. That would include the four components: Purchasing from the farmer; crushing; processing the fiber; processing the juice.

Then add up the total revenues (sales price) obtained by selling the processed fiber and the processed juice.

Deduct the total costs from the total revenue.

[bcsros]

I am very bad with math. Sorry.

[jgar1981]

How much profit (loss) does the company make by processing the intermediate products beet juice into refine sugar rather than selling it as is?