Respuesta :
Answer:
The financial advantage is $ 14 per batch
Explanation:
The computation of the financial advantage or disadvantage is as follows:
Particulars Cane Fiber Cane Juice
Sales Value after further processing $61 $67
Less:
Costs of further processing $13 $28
Benefit of Further processing $48 $39
Less : Sales value at split off point $29 $40
Net advantage (disadvantage) $19 ($1)
Now
Revenue
Industrial Fiber $61
Refined Sugar $67
Total revenue $128
Less : Expenses
Purchases from Framers $60
Crushing Costs $13
Processing fiber further $13
processing juice further $28
Total Expenses $114
Net profit from one batch $14
Hence, The financial advantage is $ 14 per batch
The financial advantage for Mae Refiners, Incorporated from processing one batch of sugar cane into the end products is $18 per batch.
Data and Calculations:
Cost of Refinery:
Cost of sugar cane per batch = $60
Crushing cost = $13
The financial advantage for further processing:
Cane Fiber Cane Juice Total
Selling price after further processing = $61 $67 $128
Selling price without further processing = (29) (40) (69)
Cost of further processing = (13) (28) (41)
The financial advantage $19 ($1) $18
Thus, Mae Refiners will be richer by $18 per batch when it processes sugar cane into industrial fiber and molasses.
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