Drew Cane Products, Inc

Multiple Choice

Drew Cane Products, Inc., processes sugar cane in batches.The company buys a batch of sugar cane from farmers for $90 which is then crushed in the company's plant at a cost of $11.Two intermediate products, cane fiber and cane juice, emerge from the crushing process.The cane fiber can be sold as is for $21 or processed further for $13 to make the end product industrial fiber that is sold for $45.The cane juice can be sold as is for $41 or processed further for $29 to make the end product molasses that is sold for $103.What is the financial advantage (disadvantage) for the company from processing one batch of sugar cane into the end products industrial fiber and molasses rather than not processing that batch at all?

A) $44
B) $(143)
C) $(39)
D) $5