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)

Question

Quizplus · Accepted Answer

The profit from selling cane juice as is: $31 - ($40 + $13) = -$22. The profit from processing cane juice into molasses: $66 - ($40 + $13 + $25) = -$12. The difference in profit is -$12 - (-$22) = $10.