Pls i will rate it, i need help with this..

StenbackStenback Chemical has spent $240,000 to refine 72,000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Stenback Chemical can process the acetone further. This processing will yield a total of 58,000 gallons of lacquer thinner that can be sold for $3.00 a gallon. The additional processing will cost $0.65 per gallon of lacquer thinner. To sell the lacquer thinner, StenbackStenback Chemical must pay shipping of $0.25 a gallon and administrative expenses of 0.15 a gallon on the thinner.

Requirements

1.	Identify the sunk cost. Is the sunk cost relevant to StenbackStenback's decision? Why or why not?
2.	Should StenbackStenback sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives.

Requirement 1. Identify the sunk cost. Is the sunk cost relevant to

StenbackStenback's

decision? Why or why not?

The

is a sunk cost that

differ between alternatives of selling as is or processing

further. Consequently, this sunk cost of $

is

to the sell or process further decision.

Requirement 2. Should

StenbackStenback

sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. (Enter a "0" for any zero amounts. Use a minus sign or parentheses in the Difference column if the Sell As Is amount exceeds the Process Further amount.)

			Sell	Process
			As Is	Further			Difference
Less:
Net benefit to operating income per batch

Decision:

Sell acetone as is.

Process further into lacquer thinner.

Choose from any list or enter any number in the input fields and then continue to the next question.