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Chemical must pay shipping of $0.19 a gallon and administrative expenses of $0.13 a gallon on the thinner. Read the requirements. Requirement 1. Identify the
Chemical must pay shipping of $0.19 a gallon and administrative expenses of $0.13 a gallon on the thinner. Read the requirements. Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Castillo's decision? Why or why not? The is a sunk cost that differ between alternatives of selling as is or processing further. Consequently, this sunk cost of is to the sell or process further decision. Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Castillo's decision? Why or why not? 2. Should Castillo sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives
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