Kyler Chemical has spent $242,000 to refine 73.000 gallons of acetone, which can be sold Requirements for $2.10 a gallon. Alternatively, Kyler Chemical can process the acetone further. This 1. Identify the sunk cost. Is the sunk cost relevant to Kyler's decision? Why or why not? processing will yield a total of 63.000 gallions of lacquer thinner that can be sold for $3.00 a 2. Should Kyler sell the acetone as is or process it into lacquer thinner? Show the gation. The additional processing will cost $0 40 per gallon of lacquer thinner. To sell the lacquer thinner, Kyler Chemical must pay shipping of $0 22 a gallon and administrative expected net revenue difference between the two alternatives expenses of $0.10 a gallon on the thinner, Requirement 1. Identify the sunk cost is the sunk cost relevant to Kyler's decision? Why or why not? is a sunk cost The amount spent to refine the acetone that does not differ between alternatives of selling as is or processing further. Consequently, this sunk cost of $ 242,000 is irrelevant to the sell or process further decision Requirement 2. Should Kyler 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 Sell As is amount exceeds the Process Further amount) Sell Process As is Further Difference Sales revenue Less Additional processing costs to convert lacquer thinner Nel benefit to operating income per batch