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please answer requirements as soon as possible. thank you. Seminole Petroleum has spent $204,000 to refine 63,000 gallons of petroleum distillate, which can be sold
please answer requirements as soon as possible. thank you.
Seminole Petroleum has spent $204,000 to refine 63,000 gallons of petroleum distillate, which can be sold for $6.40 per gallon. Alternatively, Seminole can process the distillate further and produce 58,000 gallons of cleaner fluid. The additional processing will cost $1.75 per gallon of distillate. The cleaner fluid can be sold for $9.20 per gallon. To sell cleaner fluid, Seminole must pay a sales commission of $0.11 per gallon and a transportation charge of $0.15 per gallon. Read the requirements. Requirement 1. Fill in the diagram for Seminole's alternatives. Requirements 1. Fill in the diagram for Seminole's alternatives. 2. Identify the sunk cost. Is the sunk cost relevant to Seminole's decision? 3. Should Seminole sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives Step by Step Solution
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