Wehn Refiners Inc

question 146

Multiple Choice

Wehn Refiners Inc. , processes sugar cane that it purchases from farmers.Sugar cane is processed in batches.A batch of sugar cane costs $40 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 $28 or processed further for $18 to make the end product industrial fiber that is sold for $37.The cane juice can be sold as is for $31 or processed further for $25 to make the end product molasses that is sold for $66. How much more profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?

• A)$(43)
• B)$(17)
• C)$10
• D)$(3)

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