#25

Mae Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $60 to buy from farmers and $13 to crush in the company's plant. Two intermediate 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 $13 to make the end product industrial fiber that is sold for $61. The cane juice can be sold as is for $40 or processed further for $28 to make the end product molasses that is sold for $67.

Which of the intermediate products should be processed further?

Multiple Choice

Cane fiber should be processed into industrial fiber; Cane juice should NOT be processed into molasses.

Cane fiber should be processed into industrial fiber; Cane juice should be processed into molasses.

Cane fiber should NOT be processed into industrial fiber; Cane juice should be processed into molasses.

Cane fiber should NOT be processed into industrial fiber; Cane juice should NOT be processed into molasses.