McKnight Petroleum has spent $201,000 to retine 63,000 gallons of petroleum distillato, which can be sold for $6.00 per gallon Alternatively, McKnight can process the distillato further and produce 58 000 gallons of cleaner fluid. The additional processing will cost $1 90 por gallon of distillate. The cleaner fluid can be sold for $9.00 per gallon To sell cleaner fluid, McKnight must pay a sales commission of $0 11 por gallon and a transportation charge of $0.18 per gallon Read the requirements Requirement 1. Fill in the diagram for McKnight's alternatives Revenues from selling ass Joint costs of producing 63.000 gallons of Dofrolom distilat 5 Costol processing mm Revenuestro processing Requirement 2. Identify the sunk cost is the sunk cost relevant to McKnight's decision? The $136 520 cost of further processing is a sunk cost that does differ between the alternatives of selling as is or processing further Consequently, this sunk cost is relevant to the sell-or-process further decision Requirement 3. Should McKnight soll the petroleum distillate or process it into cleaner fluid? Show the expected not revenue difference between the two alternatives (For the difference in total net revenuo, use a parenthosos or a minus sign if processing further will decrease total net revenue) Process Sell As is Further Difference Expected revenue from selling 63.000 gallons of petroleum distilato Expected revenue trom selling 58,000 gallons of cleaner fluid Additional costs of processing Total not revenue Decision Soll as is FLER