Vision Chemical has spent $$245,000$ to refine $71,000$ gallons of acetone, which can be sold for $$2\mathrm{.}50$ a gallon. Alternatively, Vision Chemical can process the acetone further. This processing will yield a total of $64,000$ gallons of lacquer thinner that can be sold for $$3\mathrm{.}20$ a gallon. The additional processing will cost $$0\mathrm{.}45$ per gallon of lacquer thinner. To sell the lacquer thinner, Vision Chemical must pay shipping of $$0\mathrm{.}19$ a gallon and administrative expenses of $$0\mathrm{.}10$ a gallon on the thinner.

Requirements

Identify the sunk cost. Is the sunk cost relevant to Vision's decision? Why or why not?

Should Vision sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives.

Requirement $1.$ Identify the sunk cost. Is the sunk cost relevant to Vision's decision? Why or why not?

The $$ is a sunk cost that further. Consequently, this sunk cost of $$ is

$$ differ between alternatives of selling as is or processing

Requirement $2.$ Should Vision sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. $($Enter a $"0"$ 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.$)$

Decision: $$