Kyler Chemical has spent $239,000 to refine 72,000 gallons of acetone, which can be sold for $2.60 a gallon. Alternatively, Kyler Chemical Requirements can process the acetone further. This processing will yield a total of 65,000 gallons of lacquer thinner that can be sold for $3.20 a gallon. 1. Identify the sunk cost. Is the sunk cost relevant to Kyler's decision? Why or why not? The additional processing will cost $0.55 per gallon of lacquer thinner. To sell the lacquer thinner, Kyler Chemical must pay shipping of $0.20 a gallon and administrative expenses of $0.11 a gallon on the thinner. 2. Should Kyler 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 Kyler'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 is J the sell or process further decision. exceeds the Process Further amount.)