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need all parts of requirement 2, Thank you Stenback Chemical has spent $244,000 to rofino 74,000 galions of aceton, which can be sold for $2.60
need all parts of requirement 2, Thank you
Stenback Chemical has spent $244,000 to rofino 74,000 galions of aceton, which can be sold for $2.60 a gallon. Alternatively, Stenbock Chemical can process the acetone further. This processing will yield a total of 61,000 gallons of lacquer thinner that can be sold for $350 a gallon. The additional processing wil cost 50.65 per gallon ol lacquer the net To sell the lacquer thinner, Stenback Chemical must pay shopping of 50 20 a gallon and administrative expenses of $0.12 a gallon on the thinner Requirements 1 Identity the sunk cost. Is the sunk cost relevant to Stenbacks decision? Why or why not? 2. Should Stenback sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives orre Requirement 1. Idently the sunk cont. In the sun cost relevant to Sunbeck's decision? Why or why not? The amount apore to retire thencetones a nunk coot that does not differ between alternatives of selling as is or processing further Comecently, this nunk cost of $ 24,00 inval to the sol or process further decision Requirement 2. Should Stenbock sell the acetone as in or process it into lacquer thumor? Show the expected net revenue difference between the two alternatives Era or for any zero amounts Use a minus sign or parentheses in the Difference column if the Soil Asle amount exceed the Process Furthermour) Sell Process As is Further Difference Sterback Chemical has spent $244,000 to retine 74,000 gallons of acetone, which can be sold for $2.60 a gallon. Alternatively, Stenback Chemical can process the acetone further. This processing will yield a total of 61,000 gallons of lacquer thinner that can be sold for $3,50 a gallon. The additional processing will cost $0.65 per gallon of lacquer thinner. To sell the lacquer thinner, Stenback Chemical must pay shipping of $0.20 a gallon and administrative expenses of $0.12 a gallon on the thinner Requirements 1. Identify the sunk cost. Is the sun decision? Why or why not? 2. Should Stenback sell the acetone thinner? Show the expected netre alternatives - FILIO LISCYCH, SUL LULUI LOGGI VI PO LICUCLIDIR. Requirement 2. Should Stenback sell the acetone as is or process it into lacquer thinner? Show the expected net revenue differe (Enter a "0" for any zero amounts Use a minus sign or parentheses in the Difference column if the Sell As Is amount exceeds the Sell Process As Is Further Difference Sales revenue Less Additional processing costs to convert lacquer thinner Net benefit to operating income per batch Step by Step Solution
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