Castillo Chemical has spent $244,000 to refine 70,000 Requirements gallons of acetone, which can be sold for $2.10 a gallon. 1. Identify the sunk cost. Is the sunk cost relevant Alternatively, Castillo Chemical can process the acetone to Castillo's decision? Why or why not? further. This processing will yield a total of 62,000 gallons of lacquer thinner that can be sold for $3.40 a gallon. The 2. Should Castillo sell the acetone as is or additional processing will cost $0.65 per gallon of lacquer process it into lacquer thinner? Show the thinner. To sell the lacquer thinner, Castillo Chemical must expected net revenue difference between the pay shipping of $0.20 a gallon and administrative expenses two alternatives. 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 further. Consequently, this sunk cost of is a sunk cost that processing is to the sell or process further decision