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Part 13 po Points: 0 of 2 Saw Roof Chemical has spent $244.000 to reline 72.000 gallons of acetone which can be sold for 1200

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Part 13 po Points: 0 of 2 Saw Roof Chemical has spent $244.000 to reline 72.000 gallons of acetone which can be sold for 1200 ali Alternatively, Root Chemical can process the acetone further. This processing wild togalom of lacquer thinner that can be sold for 53 40 gallon The additional processing cost 5080 per lot lacquer thinner. To sell the lacquer thinner, Root Chemical must pay shipping of 5021 ago and amenitive expenses of 50 15 a galon on the thinnat Require 1. 2. Show Requirement 1. Identify the sun cost is the son cost relevant to Root's decision? Why way un costat The further Consequently the sun costo meopard Root Chemical has spent $244,000 to refine 72.000 gallons of acetone, which can be sold for $200 a gallon Alternatively Root Chemical can process the acetone further. This processing will yield a total of 60,000 gallons of lacquer thinner that can be sold for $3.40 a gallon. The additional processing will cost $0 80 per gallon of lacquer thinner. To sell the lacquer thinnerRoot Chemical must pay shipping of 50 21 a gallon and administrative expenses of S0.15 a gallon on the thinner Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Root's decision? Why or why not? 2. Should Root sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives tive

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