1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Flauer [41]
3 years ago
11

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar b

eets costs $52 to buy from farmers and $11 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 $16 or processed further for $15 to make the end product industrial fiber that is sold for $64. The beet juice can be sold as is for $47 or processed further for $19 to make the end product refined sugar that is sold for $64.
What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?
Business
2 answers:
Natali5045456 [20]3 years ago
5 0

Answer:

$31

Explanation:

The incremental revenue and cost is calculated as stated below to arrive at the financial advantage

                              Beet Fiber          Beet Juice

Un processesd        16                         47                         63

Processed                64                         64                       128

Cost of further         15                         19                          34

Processing

Financial advantage = Incremental revenue - incremental cost

= 128-(63+24)= 31

Financial advantage from further processing    $31

However , i will like to mention that the financial advantage could have increased by $2 if the Beet juice is not processed further as the incremental cost is more than incremental revenue

padilas [110]3 years ago
4 0

Answer

Financial advantage from further processing    $31

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

<em>                                                                                                     $</em>

Sales revenue after the split off point( 64+64)                       128

Sales revenue at the split-off point (16+47)                            <u> 63</u>

Additional sales revenue                                                          65

Further processing cost ( 15+19)                                              <u>(34 )</u>

<em>Net income after further processing                                        31</em>

Financial advantage from further processing    $31

You might be interested in
Which of the following is the reason most people give for transferrin from a two year school to a four year school
dangina [55]

The reason could be that they want a higher education. 4 year degree is more rewarding than a 2 year degree. they want a higher education so they can get a better job that pays them even more. thats my opinion. remember this has to do more with money. the more you prepare yourself the more money you are able to get.

7 0
3 years ago
Oh no! You bounced a check. You must pay _____________, fill in the blank, to the business you wrote the original check to.
Marina CMI [18]

Answer:

bank fees

Explanation:

3 0
2 years ago
Why is doing timely reconciliations a key part of internal control activities?<br> It ensures that
kati45 [8]

Answer:

It ensures that the Effective internal control reduces the risk of asset loss, and helps ensure that plan information is complete and accurate, financial statements are reliable, and the plan's operations are conducted in accordance with the provisions of applicable laws and regulations. ... Why internal control is important to your plan.

3 0
3 years ago
Which of the following best describes the difference between a convertible bond and a warrant? Convertible bonds give the invest
levacccp [35]

Answer: Statement A

Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.

.

Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

.

Thus, from the above explanation we can conclude that statement A is correct.

4 0
2 years ago
Joshua, a manager, instructed his subordinate, Leona, to mobilize their team and prepare a report on how the office could be mad
Karolina [17]

Answer:

The email message can be read again for further reference by Leona.

Explanation:

The oral communication tends to he an effective way to give a message, however sometimes it can present difficulties. The oral communication can be misunderstood when there are phonetic expressions or physical expressions that might confuse to the person who receives the message.

The email or written communication is a more formal way to give a message, the person who receives the message can read it multiple times avoiding mistakes, furthermore, when there is a written message the person who wrote it selected the word and refine the information making it clear and easy to read.

3 0
3 years ago
Other questions:
  • A company that doesn't just make money but makes a difference in the world and gives back to the community is a company that eng
    11·1 answer
  • "A market maker enters a quote of $20.50 Bid; $21.00 Ask; with a size of "5 x 5" into the NASDAQ System. If a market order to bu
    11·1 answer
  • One way of controlling "nuisance" variables is to match the various groups by picking the confounding characteristics and delibe
    14·1 answer
  • Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have i
    11·1 answer
  • The substitution effect is the change in the quantity demanded of a good that results fromâ ______________, holding constant the
    6·1 answer
  • f Italy can produce 100,000 more pounds of chocolate every year by forgoing the production of 200,000 pounds of pasta, what is t
    6·1 answer
  • Sebastian Motors is a family-owned car dealership with two locations in central France. The car dealership markets BMWs and Mini
    11·1 answer
  • Big Cat Exploration erected an oil platform in a remote area of Texas at a cost of $10 million. Bit Cat is legally required to d
    6·1 answer
  • Kim leased an office building to USA Corporation under a ten-year lease specifying that at the end of the lease USA had to retur
    5·1 answer
  • The time value of money implies that a dollar received today is worth ________ a dollar received tomorrow.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!