P8-53A (book/static) Question Help We Noble Chemical has spent $240,000 to refine 71,000 gallons of Requirements acetone, which can be sold for $2.30 a gallon. Alternatively, 1. Identify the sunk cost. Is the sunk cost relevant to Noble's Noble Chemical can process the acetone further. This decision? Why or why not? processing will yield a total of 59,000 gallons of lacquer thinner 2. Should Noble sell the acetone as is or process it into that can be sold for $3.20 a gallon. The additional processing lacquer thinner? Show the expected net revenue difference will cost $0.85 per gallon of lacquer thinner. To sell the lacquer between the two alternatives. thinner, Noble Chemical must pay shipping of $0.24 a gallon and administrative expenses of $0.12 a gallon on the thinner. swers 1: Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Noble's decision? Why or why not? ount ing fi is a sunk cost The amount spent to refine the acetone that further. Consequently, this sunk cost of $ 240,000 is does not differ between alternatives of selling as is or processing irrelevant to the sell or process further decision n 2: nal Pr Requirement 2. Should Noble sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference is between the two alternatives. (Enter a "0" for any zero amounts. Use a minus Sign or parentheses in the Difference column if the conta Sell As Is amount exceeds the Process Further amount.) prop Soll Process As Is Further Difference Rever Sales revenue Additis Less: Additional processing costs to convert lacquer thinner ain w eryon re are ntly. enefit Net benefit to operating income per batch Decis Choose from any list or enter any number in the input fields and then click Check