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Arenz Corporation Processes Sugar Cane in Batches

Question 27

Multiple Choice

Arenz Corporation processes sugar cane in batches. The company purchases a batch of sugar cane for $53 from farmers and then crushes the cane in the company's plant at the cost of $15. 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 $18 to make the end product industrial fiber that is sold for $40. The cane juice can be sold as is for $41 or processed further for $25 to make the end product molasses that is sold for $72. Which of the intermediate products should be processed further?


A) Cane fiber should be processed into industrial fiber; Cane juice should be processed into molasses
B) Cane fiber should NOT be processed into industrial fiber; Cane juice should NOT be processed into molasses
C) Cane fiber should be processed into industrial fiber; Cane juice should NOT be processed into molasses
D) Cane fiber should NOT be processed into industrial fiber; Cane juice should be processed into molasses

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