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Alberta Barley Company (ABC) buys barley and processes the grain into other usable products. Barley can be used in flour mixes, food additives, beer production, whiskey production, animal feeds, or in cereals. Each tonne of barley that ABC purchases for $400 can be converted for an additional $200 into 250 kilograms of crushed barley and 1,000 litres of barley malt (used in vinegar production, beer production and whiskey production). A kilogram of crushed barley can be sold at the splitoff point for $2/kg and a litre of barley malt can be sold for $.40 per litre. ABC can process the 250 kilograms of crushed barley into 300 kilograms (including water content) of barley flakes which can be sold to cereal makers at an additional cost of $350. Each kilogram of barley flakes can be sold for $2.50 per kilogram. The 1,000 litres of barley malt can be further processed into 1,000 litres of barley malt vinegar at a cost of $400. Each litre of malt vinegar can be sold for $1.00 per litre. Required: For Alberta Barley Company, they are wondering if they should process the barley malt into barley malt vinegar. Should they process further, and if so, what will the Profit (Loss) be from processing further? (4 marks - 1 mark for correct multi-choice answer and 3 other marks for showing correct work in the workspace question provided - pick correct multi-choice answer below and then add any work to Alberta Barley Company's answer workspace question). Process further. The profit will be $300 Process further. The profit will be $100 Do not process further. The loss will be $(200) Do not process further. The loss will be $(100) Do not process further. The loss will be $(300) Process further. The profit will be $200

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