Oak Petroleum has spent $$202,000$ to refine $63,000$ gallons of petroleum distillate, which can be sold for $$6\mathrm{.}00$ per gallon. Alternatively, Oak can process the distillate further and produce $58,000$ gallons of cleaner fluid. The additional processing will cost $$1\mathrm{.}80$ per gallon of distillate. The cleaner fluid can be sold for $$9\mathrm{.}10$ per gallon. To sell cleaner fluid, Oak must pay a sales commission of $$0\mathrm{.}12$ per gallon and a transportation charge of $$0\mathrm{.}19$ per gallon.

Read the requirements.

Requirement $2.$ Identify the sunk cost. Is the sunk cost relevant to Oak's decision?

The $$202,000$ spent to refine the petroleum distillate is a sunk cost that does not differ between 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 Oak sell the petroleum distillate 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.$)$

Expected revenue from selling $63,000$ galions of petroleum distillate

Expected revenue from selling $58,000$ gallons of cleaner fluid

Additional costs of processing

$\backslash$table$[[$Sell As Is$,\backslash$table$[[$Process$],[$Further$]],$Difference$],[,,],[,,2],[28,,],[,,]]$