Resendes Refiners, Inc

question 55

Multiple Choice

Resendes Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $48 to buy from farmers and $16 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 $24 or processed further for $17 to make the end product industrial fiber that is sold for $38. The cane juice can be sold as is for $34 or processed further for $23 to make the end product molasses that is sold for $76.
-How much profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?

• A)$16
• B)$(104)
• C)$(6)
• D)$10

---

Definitions:

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations.

Solvency

The ability of a company to meet its long-term financial obligations.

Borrower Judged Insolvent

A situation where a borrower is legally declared unable to meet their debt obligations.

Court

A governmental institution with the authority to adjudicate legal disputes, applying and interpreting law in civil, criminal, and administrative matters.