2. The facilities freed by purchasing bindings from the outside supplle manufacture another product that will contribute $2,800 to profit. Total fixed costs which al- will be the same as if Mountain Sports had produced the bindings. Show w ternative makes the best use of Mountain Sports facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. P8-53A Sell as is or process further decisions (Learning Objective 7) Noble Chemical has spent $240,000 to refine 71,000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Noble Chemical can process the acetone further. This processing will yield a total of 59,000 gallons of lacquer thinner that can be sold for $3.20 a gallon. The additional processing will cost $0.85 per gallon of lacquer thinner. To sell the lacquer thinner, Noble Chemical must pay shipping of S0.24 a gallon and adminis- trative expenses of $0.12 a gallon on the thinner. Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Noble's decision? Why or why not? 2. Should Noble sell the acetone as is or process it into lacquer thinner? Show the ex- pected net revenue difference between the two alternatives