Oran Refiners, Inc

question 64

Multiple Choice

Oran Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $76 to buy from farmers and $18 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 $21 or processed further for $12 to make the end product industrial fiber that is sold for $43. The cane juice can be sold as is for $47 or processed further for $21 to make the end product molasses that is sold for $88.
-How much profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?

• A) ($127)
• B) $30
• C) ($26)
• D) $4

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Definitions:

Primary Reinforcer

An innately satisfying stimulus, such as food or drink, which does not require learning to become pleasurable.

Secondary Reinforcer

A stimulus that gains its reinforcing properties through association with a primary reinforcer.

Certificate

A formal document attesting to a fact, such as the completion of an educational course or the qualification of the holder.

Discriminative Stimulus

A stimulus in the environment that indicates the availability of reinforcement or punishment for a particular behavior.