Resendes Refiners, Inc., processes sugar cane that it purchases from farmers. Su

Question

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? Select one: a. $3 b. $19 c. $(45) d. $(13) 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? Select one: a. $3 b. $19 c. $(45) d. $(13) Select one: a. $3 b. $19 c. $(45) d. $(13) a. $3 b. $19 c. $(45) d. $(13)

Explanation / Answer

Cost of raw material - 73.00 additional
crush 13.00
addition cost of juice 28.00
Total 114.00 total cost of processes -- sale of each batch of
61.00 & 67.00 - 128.00 total profit less 114.00 cost -- ANSWER d) $13.00

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