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Please do all three parts Crawford Chemical has spent $239,000 to refine 75,000L of acetone, which can be sold for $2.20/L. Alternatively, Crawford Chemical can
Please do all three parts
Crawford Chemical has spent $239,000 to refine 75,000L of acetone, which can be sold for $2.20/L. Alternatively, Crawford Chemical can process the acetone further to yield a total of 65,000L of lacquer thinner that can be sold for $3.00/L. The additional processing will cost $0.70/L of lacquer thinner. To sell the lacquer thinner, Crawford Chemical must pay shipping of $0.22/L and administrative expenses of $0.12/L on the thinner. Requirements 1. Fill in the diagram for Crawford's decision. 2. Identify the sunk cost. Is the sunk cost relevant to Crawford's decision? Why or why not? 3. Should Crawford sell the acetone or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. expenses of $0.12/L on the thinner. Kequirement 7. Fill in the alagrami lor vrawiora s aecision. Sunk cost of producing 75,000L of acetone I arriuar thinnar salas ravanuaStep by Step Solution
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