Mcknight Petroleum has spent $204,000 to refine 62,000 gallons of petroleum distillate, which can be sold for $8.30 por gallon Alternatively, McKnight can process the distillate further and produce 54,000 gallons of cleaner fluid. The additional processing will cost $185 per gallon of distillate The cleaner fluid can be sold for 9.20 por gallon. To sell cleaner fluid, McKnight must pay a sales commission of So. 14 per gallon and a transportation charge of $0.18 per gallon. Read the requirements Requirement 1. Fil in the diagram for Mcknight's alternatives Revenues from selling as is 390800 Joint costs of producing 62,000 gallons of petroleum distillate 204000 Cost of processing further Revenues from processing further Next $9.20 per gallon. To sell cleaner hud, M Read the requirements Requirement 2. toontify the sun cost, is the sun cost relevant to McKnights decision The $204.000 spent to refine the petroleum distillate is a sunk cost that does not differ betwoen the alternatives of selling as is or processing further Consequently, this sunk cost is irrelevant to the sell-or-process-further decision Requirement 3. Should Mcknight sell the petroleum distillato or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. (For the difference in total net revenue use a parentheses or a minus sign if processing further will decrease total net revenue) Process Sell As Is Further Difference Expected revenue from selling 62,000 gallons of petroleum distilato Expected revenue from selling 54,000 gallons of cleanor fluid Additional costs of processing Total net revenue Decision: Sell as is