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Castillo Chemical has spent $245,000 to reline 72.000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Castillo Chemical can process the

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Castillo Chemical has spent $245,000 to reline 72.000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Castillo Chemical can process the acetone further. This processing will yield a total of 60,000 gallons of lacquer thinner that can be sold for $3.30 a gallon. The additional processing will cost $0.B0 per gallon of lacquer thinner. To sell the lacquer thinner, Castillo Chemical must pay shipping of $0,24 a gallon and administrative expenses of $0.14 aglion on the thinner Requirements 1. Identify the sunk cost is the sunk cost relevant to Castillo's decision? Why or why not? 2. Should Castillo sell the actone as is or process it into lacquer thinner? Show the expected not revenue difference between the two alternatives Requirement 1. Idently the sun cost is the sun cost relevant to Castillo's decision? Why or why not? The is a un cost that for between temes of olingas is or processing inther Concerts sankcout of to the colors decision Requirement 2. Should Castill the stone as is or processing the show the expected at reverence between the two wheelers for yo amounts Use as partes in the france comthesis and the Process Furnar Requirement 2 Should Castillo set the acetona as istar process t into losques thinner? Show it aspected net revenge atterense bewaan te mo atentatives (Share at her moments un usos son or parehases in Difference column the sall As is amount Rects the processFurther around) Sad Process Ass Further bitarnica bet Net benefit operating costa por baich Decision

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