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?

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