Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 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 $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.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

$19

Explanation:

Calculation for 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

REFINED SUGAR

Final Sales value after further processing $79

Less Sales value at split-off point ($32)

Incremental revenue from further processing$47

($79+$32)

Less Cost of further processing ($28)

Financial advantage (disadvantage) from further processing $19

($47-$28)

Therefore the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is will be $19

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.