Kempler Corporation Processes Sugar Cane in Batches

question 135

Multiple Choice

Kempler Corporation processes sugar cane in batches.The company purchases a batch of sugar cane for $34 from farmers and then crushes the cane in the company's plant at the cost of $15.Two intermediate products,cane fiber and cane juice,emerge from the crushing process.The cane fiber can be sold as is for $26 or processed further for $17 to make the end product industrial fiber that is sold for $41.The cane juice can be sold as is for $32 or processed further for $22 to make the end product molasses that is sold for $51.Which of the intermediate products should be processed further?

• A)Cane fiber should be processed into industrial fiber;Cane juice should be processed into molasses
• B)Cane fiber should NOT be processed into industrial fiber;Cane juice should NOT be processed into molasses
• C)Cane fiber should be processed into industrial fiber;Cane juice should NOT be processed into molasses
• D)Cane fiber should NOT be processed into industrial fiber;Cane juice should be processed into molasses

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