Please show steps/calculations 57. Gudger Corporation processes sugar cane in ba
ID: 2489165 • Letter: P
Question
Please show steps/calculations
57. Gudger Corporation processes sugar cane in batches. The company purchases a batch of sugar cane for $53 from famers and then crushes the cane in the company's plant at the cost of $10. Two intemediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $29 or processed further for $15 to make the end product industrial fiber that is sold for $60. The cane juice can be sold as is for $38 or processed further for $22 to make the end product molasses that is sold for $52. Whichof the intermediate products should be processed further? A Cane fiber should be processed into industrial fiber, Cane juice should NOT be processed into molasses B. Cane fiber should NOTbe processed into industrial fiber, Cane juice should be processed into molasses C. Cane fiber should NOT be processed into industrial fiber; Cane juice shouldNOT be processed into molasses D. Cane fibershould be processed into industrial fiber: Cane juice should be processed into molassesExplanation / Answer
Sugarcane (53.00) processing cost (10.00) cost (63.00) option 1 sold as is cane fibre 29.00 can juice 38.00 total sale value 67.00 profit 4.00 A B further process cane fibre can juice processing cost (15.00) (22.00) cost (63.00) (63.00) sale industrial fibre/molasses 60.00 52.00 can juice/can fibre sale 38.00 29.00 profit 20.00 (4.00) As we can see from A - that is cane fibre processed cane juice NOT processed total profit is 20 dollar As we can see from B - can juice processed and can fibre NOT processed total loss is 4 dollars Neither processed profit is 4 dollars out for ABCD answer is A