Wehn Refiners, Inc

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)

Correct Answer:

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