Question: Can someone please help me solve for both requirements! Would mean a lot! Castillo Chemical has spent $245,000 to refine 71,000 gallons of acetone, which

Can someone please help me solve for both requirements! Would mean a lot!

Castillo Chemical has spent $245,000 to refine 71,000 gallons of acetone, which can be sold for $2.60 a Requirements gallon. Atternatively, Castlllo Chemical can process the acetone further. This processing will yield a total of 58,000 1. Identify the sunk cost. Is the sunk cost relevant to Castillo's decision? Why or why not? gallons of lacquer thinner that can be sold for $3.50 a gallon. The additional processing will cost $0.75 per gallon of 2. Should Castillo sell the acetone as is or process it into lacquer thinner? Show the expected net revenue lacquer thinner. To sell the lacquer thinner, Castillo Chemical must pay shipping of $0.22 a gallon and administrative difference between the two altematives. expenses of $0.14 a gallon on the thinner. Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Castillo's decision? Why or why not? The |that is a sunk cost differ between altematives of selling as is or processing further. Consequently, this sunk cost of is to the sell or process further decision

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