5. ALL REQUIREMENTS & IN GRAPH.

Presion Petroleum has spent $205,000 to refine 64,000 gallons of petroleum ditallate, which can be sold for $6.10 per gallen. Alternatively. Preston can process the distlate firther and mroduce 54,000 galions of cleaner fluid. The additional processing will cost $1.85 per gallon of distillate. The cleaner fluid can be sold for $9,00 per galion. To sall deaner fluid, Preston mast pey a sales commissies of $0.11 per gallon and a transportation charge of $0.16 per gallon. Read the regitrments Requirement 1. Fill in the diagram for Preston's altematives, sion of $0.11 per gallon and a transportation charge of $0.16 per gallon. requirements. ement 1. Fill in the diagram for Preston's alternatives. Requirements Joint costs 1. Fill in the diagram for Preston's alternatives. of producing 2. Identify the sunk cost. Is the sunk cost relevant to Preston's decision? 64,000 3. Should Preston sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives