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Rouse Petroleum has spent $202,000 to refine 64,000 gallons of petroleum distillate, which can be sold for $6.00 per gallon Alternatively, Rouse can process the
Rouse Petroleum has spent $202,000 to refine 64,000 gallons of petroleum distillate, which can be sold for $6.00 per gallon Alternatively, Rouse can process the distillate further and produce 56,000 gallons of cleaner fluid. The additional processing will cost $190 per gallon of distillate. The cleaner fluid can be sold for $9.10 per gallon. To sell cleaner fluid, Rouse must pay a sales commission of $0.11 per gallon and a transportation charge of $0.17 per gallon Read the requirements Requirement 1. F in the diagram for Rouse's alternatives. Requirements Revenues from selling as is 1. Fill in the diagram for Rouse's alternatives 2. Identify the sunk cost is the sunk cost relevant to Rouse's decision? 3. Should Rouse sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives Joint costs of producing 64.000 gallons of petroleum distillate Print Done Revenues from processing processing Requirement 2. Identify the sunk cost is the sunk cost relevant to Rouse's decision? Enter any number in the edit fields and then continue to the next
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