Mae Refiners, Inc

question 14

Multiple Choice

Mae Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $60 to buy from farmers and $13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $29 or processed further for $13 to make the end product industrial fiber that is sold for $61. The cane juice can be sold as is for $40 or processed further for $28 to make the end product molasses that is sold for $67.
-What is the financial advantage (disadvantage) for the company from processing the intermediate product cane juice into molasses rather than selling it as is?

• A) ($74) per batch
• B) ($14) per batch
• C) ($1) per batch
• D) ($38) per batch

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Definitions:

Unit Change

A change or difference of 1 unit in the value of a variable.

MSR

A term that could refer to various specific metrics or identifiers depending on the context; without further context, a precise definition cannot be provided. NO.

Degrees of Freedom

Represents the number of independent values or quantities that can be assigned to a statistical distribution, affecting the calculation of various statistical tests.

SSR

Sum of Squares due to Regression, a measure of the variation explained by the regression line.