Prevatte corporation purchases potatoes from farmers the

Assignment Help Accounting Basics

Reference no: EM13594591

Prevatte Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $45 to buy from farmers and $11 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $27 or processed further for $16 to make the cocktail of nutrients that are sold for $47. The depeeled spuds can be sold as is for $38 or processed further for $27 to make frozen french fries that are sold for $59.

Required:

a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and fozen french fries?

b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product? Explain

Reference no: EM13594591

Questions Cloud

Human performance systems 1explain how the hps human : 1.explain how the hps human performance systems model interacts with a process diagram to aid in performing an enabler

Industrialization why did the great railroad strikes of : why did the great railroad strikes of 1877 and the haymarket square riot cause the public to resent the labor

Stowers research issues bonds dated january 1 2011 that pay : stowers research issues bonds dated january 1 2011 that pay interest semiannually on june 30 and december 31. the bonds

Sunshine cos bookkeeper recorded a check as 693 on the : the following items are from the bank reconciliation of sunshine co. for the month ended february 292000. where does

Prevatte corporation purchases potatoes from farmers the : prevatte corporation purchases potatoes from farmers. the potatoes are then peeled producing two intermediate

Aachine costing 470000 with a four-year life and an : a machine costing 470000 with a four-year life and an estimated 30000 salvage value is installed in calhoon companys

Write a balanced equation for the reduction of : write a balanced equation for the reduction of 9-fluorenone to 9-hydroxyfluorene by sodium borohydride. what is the

In the current year mikes agi is 50000 mike has no : in the current year mikes agi is 50000. mike has no miscellaneous itemized deductions other than the employment-related

The varone company makes a single product called a hom the : the varone company makes a single product called a hom. the company has the capacity to produce 40000 homs per year.

User Account

All Pages