Sweetness Inc. grows and sells fresh sugarcane and sugar. Each yield of sugarcane gives 3,500 pounds...
Sweetness Inc. grows and sells fresh sugarcane and sugar. Each yield of sugarcane gives 3,500 pounds and is referred to as a load. The cost of growing and harvesting the sugarcane is $350 per load. Sweetness Inc. can sell a load to grocers at $0.25 per pound. Alternatively, it could be processed into sugar. The average cost of processing including packaging is $0.15 per pound. The selling price of sugar is $0.75 per pound and requires two pounds of sugarcane. Based on the scenario, which of the following alternatives is most cost effective? (Round your answer to two decimal places.)
a.Sweetness, Inc., should sell sugarcane to the grocers as it provides an advantage of $525.00 per load.
b.Sweetness, Inc., should process sugarcane into sugar as it provides an advantage of $157.50 per load.
c.Sweetness, Inc., should process sugarcane into sugar as it provides an advantage of $682.50 per load.
d.Sweetness, Inc., should sell sugarcane to the grocers as it provides an advantage of $105.00 per load.
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Sweetness Inc. grows and sells fresh sugarcane and sugar. Each
yield of sugarcane gives 3,500 pounds...
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