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

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Definitions:

Gain-Sharing Plans

Incentive strategies that reward employees for their contributions to a company's success, usually through improved efficiency and productivity, resulting in financial gains shared among staff.

Monetary

Pertaining to money or currency, especially in terms of the management, circulation, and control of money in an economy.

Net Profits

The amount of money that remains after all operating expenses, taxes, and interest are deducted from a company's total revenue.

Stock Options

Financial instruments that give employees the right to buy or sell shares of their company's stock at a predetermined price.