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Score: 0.5 of 2 pts 7 of 7 (7 complete HW Score: 85.39%, 12.81 of 15 pt P8-53A (similar to) Question Help Castillo Chemical has
Score: 0.5 of 2 pts 7 of 7 (7 complete HW Score: 85.39%, 12.81 of 15 pt P8-53A (similar to) Question Help Castillo Chemical has spent $241,000 to refine 73,000 gallons of cotone, which can be sold for $2.70 a Requirements gallon. Alternatively, Castillo Chemical can process the stone further. This processing will yield a total of 1. Identify the sunk cool is the sunk cost relevant to Castillo's decision? Why or why not? 50.000 gallons of noguer thinner that can be sold for $3.00 a gallion. The additional processing will cost $0.15 pergalon of lagerinner. To sell the lacquer thinner, Castillo Chemical mast pay shipping of 50 22 a galon 2. Should Castillo sell the stone as is or process it into lacquer thinner? Show the expected net revenue and administrative expenses of $0.15 a gation on the thinner difference between the two alternatives Requirement 1. Identity to work cont. In the sunk con relevant to Chito's decision? Why or why not? is a surk cost The amount spent to refine the acetone that does not differ between alternatives of selling ass or processing further. Consequently, this sunk cost of $ 241,000 irrelevant to the sell or process further decision Requirement 2. Should Castillo sell the acetone as is or process into lacquer thinner? Show The expected net revenue difference between the two alternatives. (Enter a "" for any zero amounts Use a minus sign or parentheses in the Difference column the Sell As is amount exceeds the Process Further amount.) Sell Process As is Further Difference Ses revenue Additional processing costs to convert lacquer thinner Net benefit to operating income per batch Choose from any list or enter any number in the input fields and then click Check Answer remaining Clear All Check
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