Palinkas Cane Products, Inc

question 82

Multiple Choice

Palinkas Cane Products, Inc., processes sugar cane in batches. The company buys a batch of sugar cane from farmers for $80 which is then crushed in the company's plant at a cost of $11. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $22 or processed further for $10 to make the end product industrial fiber that is sold for $30. The cane juice can be sold as is for $41 or processed further for $27 to make the end product molasses that is sold for $101. How much more profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?

• A)$(128)
• B)$3
• C)$(28)
• D)$31