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. 8 Homework K Question 5, PM8-32B (similar to) Part 1 of 4 > HW Score: 10%, 2 of 20 points O Points: 0
. 8 Homework K Question 5, PM8-32B (similar to) Part 1 of 4 > HW Score: 10%, 2 of 20 points O Points: 0 of 5 Save Smith Petroleum has spent $202,000 to refine 61,000 gallons of petroleum distillate, which can be sold for $6.00 per gallon. Alternatively, Smith can process the distillate further and produce 56,000 gallons of cleaner fluid. The additional processing will cost $1.80 per gallon of distillate. The cleaner fluid can be sold for $9.20 per gallon. To sell cleaner fluid, Smith must pay a sales commission of $0.13 per gallon and a transportation charge of $0.17 per gallon. Read the requirements. Requirement 1. Fill in the diagram for Smith's alternatives. Requirements ... Joint costs 1. Fill in the diagram for Smith's alternatives. 2. of producing 61,000 gallons of 3. Identify the sunk cost. Is the sunk cost relevant to Smith's decision? Should Smith sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. petroleum distillate $ Print Done
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