Arline Cane Products, Inc

Multiple Choice

Arline Cane Products, Inc., processes sugar cane in batches. The company buys a batch of sugar cane from farmers for $56 which is then crushed in the company's plant at a cost of $14. 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 $14 to make the end product industrial fiber that is sold for $34. The cane juice can be sold as is for $40 or processed further for $23 to make the end product molasses that is sold for $80. How much profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?

A) $13
B) ($6)
C) ($107)
D) $7