Tb 120 resendes refiners inc processes sugar cane that it

Reference no: EM13608293

TB 120 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?

Reference no: EM13608293

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