HELP

Preston Chemical has spent 5240,000 to refine 71,000 gallons of acetone, which can be sold for $2.00 a gallon. Alternatively, Preston Chemical can process the acetone further. This processing will yield a total of 63,000 gallons of lacquer thinner that can be sold for $3 40 a gallon The additional processing will cost $0.40 per gallon of lacquer thinner. To sell the lacquer thinner. Preston Chemical must pay shipping of 50 22 a gallon and administrative expenses of $0.143 gallon on the thinner Requirements 1. Identify the sunk cost is the sunk cost relevant to Preston's decision? Why or why not? 2. Should Preston 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 Preston'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 to the sell or process further decision Requirement 2. Should Preston 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 Sel As is amount exceeds the Process Further amount) Sell Process As is Further Difference Sales revenue red Less Additional processing costs to convert lacquer thinner Net benefit to operating income per batch Decision