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25-5 PLEASE ANSWER ALL THE REQUIRED FIELDS LISTED!!!! Preston Petroleum has spent $200,000 to refine 64,000 gallons of petroleum distillate, which can be sold for
25-5 PLEASE ANSWER ALL THE REQUIRED FIELDS LISTED!!!!
Preston Petroleum has spent $200,000 to refine 64,000 gallons of petroleum distillate, which can be sold for $6.20 per gallon. Alternatively, Preston can process the distillate further and produce 58,000 gallons of cleaner fluid. The additional processing will cost $1.65 per gallon of distillate. The cleaner fluid can be sold for $9.20 per gallon. To sell cleaner fuid, Preston must pay a sales commission of $0.10 per gallon and a transportation charge of $0.17 per gallon. cessing wi conn Altermnatively. S0.17 per gallon. oPer galion. T sell deaer fuid, res Read the requirements Requirement 1. Fill in the diagram for Preston's alternatives. Requirements 1. Fill in the diagram for Preston's alternatives. 2. Identify the sunk cost. Is the sunk cost relevant to Preston's decision? 3. Should Preston sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives Print Done
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