PLEASE ANSWER REQUIREMENT #2

Stenback Chemical has spent $242,000 to refine 73,000 gallons of acetone, which can be sold for Requirements $2.60 a gallon. Alternatively. Stenback Chemical can process the acetone further. This processing will 1. Identify the sunk cost, Is the sunk cost relevant to Stenback's decision? Why or why not? yield a total of 65,000 gallons of lacquer thinner that can be sold for $3.40 a gallon. The additional 2. Should Stenback sell the acetone as is or process it into lacquer thinner? Show the processing will cost $0.80 per gallon of lacquer thinner. To sell the lacquer thinner, Stenback Chemical must pay shipping of $0.21 a gallon and administrative expenses of 50.11 a gallon on the expected net revenue difference between the two alternatives. thinner. Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Stenback's decision? Why or why not? The is a sunk cost that differ between alternatives of selling as is or processing further. Consequently, this sunk cost of e sell or process further decision. Requirement 2. Should Stenback sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. (Enter a "o" for any zero amounts. Use a minus sign or parentheses in the Difference column if the Sell As Is amount exceeds the Process Further amount.)