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Homework: Chapter 25 Homework: E25-9, E25-11, E25-13, E25-18 S Score: 0 of 7 pts 5 of 5 (4 complete) HW Score: 46.39%, 6.96 of 1
Homework: Chapter 25 Homework: E25-9, E25-11, E25-13, E25-18 S Score: 0 of 7 pts 5 of 5 (4 complete) HW Score: 46.39%, 6.96 of 1 P25-26A (similar to) Question Help Cole Petroleum has spent $200,000 to refine 60,000 gallons of petroleum distillate, which can be sold for $5.00 per gallon. Alteratively, Cole can process the distilate further and produc 54,000 gallons of cleaner fuld. The additional processing will cost $1.75 per gallon of distillate. The cleaner fluid can be sold for $9.10 per gallon. To sell cleaner fluid, Cole must pay a sal commission of SO. 11 per gallon and a transportation charge of 50.20 per gallon Read the resulrements Requirement 1. Fill in the diagram for Cole's alternatives Requirements - X Revenues from selling as is 1. Fill in the diagram for Cole's alternatives 2. Identify the sunk cost. Is the sunk cost relevant to Cole's decision? 3. Should Cole sell the petroleum distilate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. Joint costs of producing 60,000 gallons of petroleum distillate 208000 Print Done $ Cost of processing further Revenues from processing further Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Awiwer
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