Math  /  Numbers & Operations

QuestionQ. 3 ( 5 marks): Sands Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches, A batch of sugar beets costs \50tobuyfromfarmersand$15tocrushinthecompanysplant.Twointermediateproducts,beetfiberandbeetjuice,emergefromthecrushingprocess.Thebeetfibercanbesoldasisfor50 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 20 or processed further for $19\$ 19 to make the end product industrial fiber that is sold for $58\$ 58. The beet juice can be sold as is for $41\$ 41 or processed further for $23\$ 23 to make the end product refined sugar that is sold for $58\$ 58. Required: 1)- Which of the intermediate products should be processed further? 2)- How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar?

Studdy Solution
Calculate the total profit or loss from processing one batch of sugar beets into the end products.
- Total revenue from selling industrial fiber: $58 \$58 - Total revenue from selling beet juice as is: $41 \$41 - Total cost of purchasing and crushing: $65 \$65 - Additional processing cost for beet fiber: $19 \$19
Total profit (loss):
Total Revenue=$58+$41=$99 \text{Total Revenue} = \$58 + \$41 = \$99 Total Cost=$65+$19=$84 \text{Total Cost} = \$65 + \$19 = \$84 Profit (Loss)=$99$84=$15 \text{Profit (Loss)} = \$99 - \$84 = \$15
The company makes a profit of $15 \$15 by processing one batch of sugar beets into the end products industrial fiber and refined sugar.
The intermediate product beet fiber should be processed further, while beet juice should not. The profit from processing one batch is:
$15\boxed{\$15}

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