BY-PRODUCT PRICING The production of certain goods—meats, petroleum products, and
other chemicals—often results in by-products that should be priced on their value. Any income
earned on the by-products will make it easier for the company to charge a lower price on its main
product if competition forces it to do so. Formed in 1855, Australia’s CSR was originally named
Colonial Sugar Refinery and forged its early reputation as a sugar company. The company began to
sell by-products of its sugar cane: waste sugar cane fiber was used to manufacture wallboard. Today,