Discussion
Which of the following best explains why the highest-value route is not always the best choice?
Answer: D
Correct answer: Processing cost may absorb the extra value
The margin is what matters, not the product price. A route yielding a product worth 2100 per tonne but costing 1900 to run returns 200, while a simple route yielding 780 at a cost of 380 returns 400 - twice as much from a far less demanding process.
Sophisticated conversions carry heavy capital and operating costs, and on a modest residue stream those costs frequently swallow the additional value. High-value products are not inherently hard to sell, and simple routes do not yield more product; it is the cost that decides.
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