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Carvalho Canning Inc. processes sugar cane into refined sugar at a processing cost of $10,800 per batch. Carvalho Canning Inc. can sell the refined sugar
Carvalho Canning Inc. processes sugar cane into refined sugar at a processing cost of $10,800 per batch. Carvalho Canning Inc. can sell the refined sugar as is, or it can process it further to be used in drink mixes or assorted candies. Once processed, each batch of refined sugar would result in the following sales revenue: The cost of transforming the refined sugar into drink mixes would be $68,500. Likewise, the company would incur a cost of $176,000 to transform the sugar into assorted candies. The company president has decided to make the assorted candies due to their high sales value and to the fact that the sugar processing costs eats up most of refined sugar profits. Show the cost differential for both processing options and determine if the president made the right decision
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