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Rouse Petroleum has spent $204,000 to refine 63,000 gallons of petroleum distillate, which can be sold for $6.20 per gallon. Alternatively, Rouse can process the
Rouse Petroleum has spent $204,000 to refine 63,000 gallons of petroleum distillate, which can be sold for $6.20 per gallon. Alternatively, Rouse can process the distillate further and produce 57,000 gallons of cleaner fluid. The additional processing will cost $1.75 per gallon of distillate. The cleaner fluid can be sold for $9.30 per gallon. To sell cleaner fluid, Rouse must pay a sales commission of $0.13 per gallon and a transportation charge of $0.18 per gallon. Read the requirements. Requirement 1. Fill in the diagram for Rouse's alternatives. $ Joint costs of producing 63,000 gallons of petroleum distillate Revenues from selling as is Cost of Revenues from processing further processing further
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