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Castillo Petroleum has spent $200,000 to refine 64,000 gallons of petroleum distillate, which can be sold for $6.10 per gallon. Alternatively, Castillo can process the distillate further and produce 57,000 gallons of cleaner fluid. The additional processing will cost $1.80 per gallon of distillate. The cleaner fluid can be sold for $9.00 per gallon. To sell cleaner fluid, Castillo must pay a sales commission of $0.10 per gallon and a transportation charge of $0.19 per gallon. Read the requirements. Requirement 1. Fill in the diagram for Castillo's alternatives. 1. Fill in the diagram for Castillo's alternatives. 2. Identify the sunk cost. Is the sunk cost relevant to Castillo's decision? 3. Should Castillo sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. Read the requirements. Revenues from selling as is Joint costs $ of producing 64,000 gallons of petroleum distillate Cost of Revenues from processina processina or producing 64,000 gallons of petroleum distillate Cost of Revenues from $ processing processing further further