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Zollars Cane Products,Inc

Question 81

Multiple Choice

Zollars Cane Products,Inc. ,processes sugar cane in batches.The company buys a batch of sugar cane from farmers for $70 which is then crushed in the company's plant at a cost of $19.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 $42.The cane juice can be sold as is for $44 or processed further for $26 to make the end product molasses that is sold for $88.How much profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?


A) $26
B) $2
C) $(24)
D) $(128)

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