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 one batch of sugar cane into the end products industrial fiber and molasses?

Answer rating: 100% (QA)

Incremental analysis Cane Fiber Cane Juice Selling price after further processing 37 66 Ssel... View the full answer