Question
Geaux Tiger Corporation processes sugar cane in batches. Tiger buys cane from farmers at a cost of $69 per batch. Tiger incurs a cost of
Geaux Tiger Corporation processes sugar cane in batches. Tiger buys cane from farmers at a cost of $69 per batch. Tiger incurs a cost of $17 per batch to crush the cane in the company's plant. Crushing cane produces two intermediate products, cane stalk and cane mash juice from the crushing process. The cane stalk from a batch can be sold as is for $26 or it can be processed further for $16 per batch to make the end product, cane roux, that is sold for $42. The cane mash juice can be sold as is for $45 or it can be processed further for a cost of $23 per batch to make another end product, loaded sugar, that is sold for $90. How much profit (loss) does the company make by processing one batch of sugar cane into the end products cane roux and loaded sugar?
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