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please show work ans make it clear on what your answering This Que 0 the Requirements 1. Identify the sunk cost. Is the sunk cost
please show work ans make it clear on what your answering
This Que 0 the Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Rouse's decision? Why or why not? 2. Should Rouse sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives Jes. (Enter a "o for any zero amounts. Use a minus sign or parentheses in the Difference column if the Sell As is amount exceeds the Process Further amoun OU COM Rouse Chemical has spent $239,000 to refine 71.000 gallons of acetone, which can be sold for $2.20 a gallon. Alternatively, Rouse Chemical can process the acetone further. This processing will yield a total of 60,000 gallons of lacquer thinner that can be sold for $3.40 a gallon The additional processing will cost $0.70 per gallon ol lacquer thinner. To sell the lacquer thinner, Rouse Chemical must pay shipping of $0.19 a gallon and administrative expenses of so iz a gallon on the thinner. Roqe 1. ld 2 SA Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Rouse's decision? Why or why not? The is a sunk cost that differ between alteratives of selling as is or processing lurther Consequently, this sunk cost of is to the sell or process further decision Requirement 2. Should Rouse sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two altermatives. (Enter a o'le Sell Process As Is Further Difference Nel benefit to operating income per batch Decision Step by Step Solution
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