Resendes Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $48 to buy from farmers and $16 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 $24 or processed further for $17 to make the end product industrial fiber that is sold for $38. The cane juice can be sold as is for $34 or processed further for $23 to make the end product molasses that is sold for $76.
-How much profit (loss)does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?
A)$3
B)$19
C)$(45)
D)$(13)

Question

Quizplus · Accepted Answer

The company makes a profit of $19 by processing the intermediate product cane juice into molasses rather than selling it as is.