Duarte Corporation processes sugar beets that it purchases from farmers.
Sugar beets are processed in batches. A batch of sugar beets costs $43 to buy from farmers and $14 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 $19 or processed further for $18 to make the end product industrial fiber that is sold