Priddy Corporation processes sugar cane in batches.The company purchases a batch of sugar cane for $62 from farmers and then crushes the cane in the company's plant at the cost of $18.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 $13 to make the end product industrial fiber that is sold for $36.The cane juice can be sold as is for $43 or processed further for $23 to make the end product molasses that is sold for $85.Which of the intermediate products should be processed further?

A) Cane fiber should NOT be processed into industrial fiber; Cane juice should be processed into molasses
B) Cane fiber should be processed into industrial fiber; Cane juice should NOT be processed into molasses
C) Cane fiber should be processed into industrial fiber; Cane juice should be processed into molasses
D) Cane fiber should NOT be processed into industrial fiber; Cane juice should NOT be processed into molasses

Question

Sascha Stutz · Accepted Answer

Final Answer : A, Explanation :    Cane fiber should NOT be processed into industrial fiber but cane juice should be processed into molasses.

Definitions

Learning Objectives

Learning Objectives

Related questions