Vision Chemical has spert $242,000 to retine 73,000 gallens of acetone, which can be sold...
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Vision Chemical has spert $242,000 to retine 73,000 gallens of acetone, which can be sold for $2.70 a gallon. Alernatively, Vision Chemical can process the acetone futther. This processing will yeld a fotal of per gallon of lacquer thinner. To sel the lacquer thinner, Vision Chemical must pay shipging of $0.23 a gallon and administrative expenses of $0.15 a gallon on the thinner: Requirements 1. Idently the sunk cose. is the surk cost relevant to Vision's decision? Wry or why nor? 2. Should Vision sell the acelone as is or procens it inbo lacquer thinner? Show the expected net revenue difference between the two allernatives. Requirement 1. Idently the sunik cost. is the sunk cost relevant to Vision's decision? Why or why not? The is a nunk cont further. Consequerdy, this sunk cost of is dither between aterratives of seling as is or processing to the sel or process further decision
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