o Cole Petroleum has spent $200,000 to refine 63,000 gallons of petroleum distillate, which can be sold for $6.30 per gallon Alternatively, Cole can process the distillate further and produce 55,000 gallons of cleaner fluid. The additional processing will cost $1.85 per gallon of distillate. The cleaner fluid can be sold for $9.30 per gallon. To sell cleaner fluid, Cole must pay a sales commission of $0.13 per gallon and a transportation charge of $0.15 per gallon Read the requirements Requirement 1. Fill in the diagram for Cole's alternatives. Revenues from selling as is Joint costs of producing 63,000 gallons of petroleum distillate Cost of processing further Revenues from processing further Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Cole's decision? V is a sunk cost that differ between the alternatives of selling as is or processing further The Consequently, this sunk cost is to the sell-or-process-further decision Requirement 3. Should Cole sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. (For the difference in total net revenue, use a parentheses or a minus sign if processing further will decrease total net revenue) Process Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Cole's decision? The is a sunk best that differ between the alternatives of sel Cons iss-further decision $131,950 cost of further processing Reqy ocess it into cleaner fluid? Show the expected net revenue alteri $200,000 spent to refine the petroleum distillate entheses or a minus sign if processing further will decrease Process Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Cole's decision? The is a sunk cost that differ between the alternatives of selling as is or Consequently, this sunk cost is Y to the sell-or-process-further d does Requirement 3. Should Cole sell the petroleum distillate or process it into alternatives. (For the difference in total net revenue, use a parentheses on w the expected net revenue difference betu Icessing further will decrease total net rever does not Process Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Cole's decision? The is a sunk cost that differ between the alternatives of selling as is or processing Consequently, this sunk cost is M to the sell-or-process-further decision. Requirement 3. Should Cole se alternatives. (For the difference tillate or process it into cleaner fluid? Show the expected net revenue difference between the use a parentheses or a minus sign if processing further will decrease total net revenue.) irrelevant relevant Process Sell As Is Further Difference Requirement 3. Should Cole sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. (For the difference in total net revenue, use a parentheses or a minus sign if processing further will decrease total net revenue.) Process Sell As Is Further Difference Expected revenue from selling 63,000 gallons of petroleum distillate Expected revenue from selling 55,000 gallons of cleaner fluid Additional costs of processing Total net revenue Decision Enter any number in the edit fields and then continue to the next question ther decision Requirement 3. Should Cole sell the petroleum distillate or process it into cleaner fluid? Show the expected n alternatives. (For the difference in total net revenue, use a parentheses or a minus sign if processing further we Process Sell As Is Further Expected revenue from selling 63.000 gallons of petroleum distillate Expected revenue from selling 55,000 gallons of cleaner fluid Additional costs of processing & Total net revenue Decision: continue to the next question Enter any Sell as is Process further into cleaner