Sell as-is or process further (17 points): Douglas' Funiture Co. is considering whether they want to...

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Sell as-is or process further (17 points): Douglas' Funiture Co. is considering whether they want to sell their furniture wood finish spray as-is or process it further. Douglas' has spent $20,000 to refine 70,000 gallons of its furniture wood finish spray, which can be sold to retail stores for $2.50 a gallon. Shipping costs for selling the spray will be $15,000. Alternatively, Douglas can process the furniture wood finish spray further, and sell it to the general public for $3.00 a gallon. The processing will yield 65,000 gallons of spray at a cost of $0.45 per gallon. Shipping costs for selling the spray will be $15,000. Information for being processed further Information without being processed further Total cost of furniture wood finish spray S Volume (in gallons) 20,000 Total additional cost (per unit) 70,000 Volume (in gallons) S 0.45 65,000 Sales price to retail stores Shipping cost S S 2.50 Sales price to general public 15,000.00 Shipping cost S S 3.00 15,000.00 1. Identify two of the costs that are irrelevant for this decision. Explan why each of them is irrelevant. Irrelevant cost Amount Explanation 2. Show the expected net revenue difference between the two alternative batches (as-is or processed further). USE EXCEL FORMULAS TO CALCULATE. Sell as-is Process further Difference Net benefit to operating income Should Douglas sell the furniture wood finish spray as-is or process it further? Sell as-is or process further (17 points): Douglas' Funiture Co. is considering whether they want to sell their furniture wood finish spray as-is or process it further. Douglas' has spent $20,000 to refine 70,000 gallons of its furniture wood finish spray, which can be sold to retail stores for $2.50 a gallon. Shipping costs for selling the spray will be $15,000. Alternatively, Douglas can process the furniture wood finish spray further, and sell it to the general public for $3.00 a gallon. The processing will yield 65,000 gallons of spray at a cost of $0.45 per gallon. Shipping costs for selling the spray will be $15,000. Information for being processed further Information without being processed further Total cost of furniture wood finish spray S Volume (in gallons) 20,000 Total additional cost (per unit) 70,000 Volume (in gallons) S 0.45 65,000 Sales price to retail stores Shipping cost S S 2.50 Sales price to general public 15,000.00 Shipping cost S S 3.00 15,000.00 1. Identify two of the costs that are irrelevant for this decision. Explan why each of them is irrelevant. Irrelevant cost Amount Explanation 2. Show the expected net revenue difference between the two alternative batches (as-is or processed further). USE EXCEL FORMULAS TO CALCULATE. Sell as-is Process further Difference Net benefit to operating income Should Douglas sell the furniture wood finish spray as-is or process it further?