Do Homework Kinza Sohail Google Chrome Secure htpswwwmathulc

Do Homework- Kinza Sohail Google Chrome Secure htps//www.mathul.com/Student/PlayerlHomework aspxthomeworkid 4870694898iquestionld-6&flushed-truekcld-50506488xcenterwin-yes; Principles of Managerial Accounting-Summer 2018 Kínza Sohail & 7/15/18 1:07 AM Homework: Chapter 8 Homework Sav Score: 0 of 1 pt 6 of 6 (4 complete)> HW Score: 49.15%, 2.95 of 6 P8-53A (similar to) Cole Chemical has spent $243,000 to refine 73,000 gallons of acetone, which can be sold for $2.10 a gallon. Alternatively, Cole Chemical can process the acetone further. This processing will yield a $0.65 per gallon of lacquer thinner. To sell the lacquer thinner, E Question Help Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Cole\'s decision? Why or why not? id a total of of lacquer thinner that can be sold for S3,50 a galln Theaial processing will. Should Cole sell the acetane as is or process it into lacquer thinner? Show the expected net Cole Chemical must pay shipping of revenue difference between the two alternatives $0.22 a gallon and administrative expenses of $0.12 a gallon on the thinner Requirement 1. Identify the sunk cost. Is the sunk cost relevant to le\'s decision? Why or why not? is a sunk cost The that differ between alternatives of selling as is or processing further. Consequently, this sunk cost ofsis to the sell or process further decision. Choose from any list or enter any number in the input fields and then click Check Answer Check Answer Clear All parts remaining 7/15/20 0 Type here to search

Solution

Ans 1 Fill in the Blanks answer 1 Amt spent to refine the acetone 2 Does not 3 $234,000 4 Irrelevant As the amt spent to refine acetone has already being incurred so it’s a sunk cost and not relevant for decision making Ans 2 Sell as is Process further Difference e Sales Revenue 153300 206500 53200 (73000*2.1) (59000*3.5) Less: additional processing cost 0 58410 -58410 59000*(.65+.22+.12) Net benefit to operating Income 153300 148090 -5210 Decision its better to sell as is If any doubt please comment