Answer:
Financial advantage of further processing = $22
Explanation:
As per the data given in the question,
Cost of batch = $51
Processing cost of batch = $10
Total cost of batch of sugar beets = $51 + $10 = $61
Sale of beet fiber without further processing = $21
Sale of juice fiber without further processing = $42
Total sale value =$21+$42 = $63
Cost of sugar beets = $61
Loss on sale without further processing = $63 - $61 = $2
Financial advantage :
Sale value = $59
Processing cost = $11
Incremental advantage = $59 - $11 = $48
Sale value of refined sugar = $59
Processing cost = $24
Incremental advantage = $59 - $24 = $35
Total Incremental advantage = $48 + $35 = $83
Total cost of beet sugar = $61
Financial advantage of further processing = $83 - $61 = $22
Hence, the batch of sugar beets would loss of $2 if not processed further but sold as beet fiber and beet juice.
The batch of sugar beets would earn a profit of $22 when processed further.
