Sprague Mining Company (SMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. SMC's management is currently evaluating the possibility of further processing the raw coal by sizing and cleaning it and selling it to an expanded set of customers at higher prices. The option of building a new sizing and cleaning plant is ruled out as being financially infeasible. Instead, Summer Davidson, a mining engineer, is asked to explore outside contracting arrangements for the cleaning and sizing process. Davidson puts together the following summary: (Click the icon to view the summary.) (Click the icon to view the additional information.) Required Summary Requirement 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling calculating the incremental sales revenue, and then incremental costs and the incremental gain or los parentheses or a minus sign for losses.) Incremental sales revenues: Sales revenue after further processing Sales revenue from bulk raw coal Incremental sales revenue Required 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) 2. How would your analysis be affected if the cost of producing raw coal could be held down to $16 per tonne? 3. Now consider the potential value of the coal fines and prepare an addendum that shows how their value affects the results of your analysis prepared in requirement 1