Post Chemical has spent $240,000 to refine 79,000 L of acetone, which can be sold for $2.50/L. Alternatively, Post Requirements Chemical can process the acetone further to yield a total of 58,000 L of lacquer thinner that can be sold for $3.20/L. The 1. Fill in the diagram for Post's decision. additional processing will cost $0.65/L of lacquer thinner. To sell the lacquer thinner, Post Chemical must pay shipping of Identify the sunk cost. Is the sunk cost relevant to Post's decision? Why or why not? C N $0.26/L and administrative expenses of $0.10/L on the thinner. Should Post sell the acetone or process it into lacquer thinner? Show the expected net revenue differe between the two alternatives. Requirement 1. Fill in the diagram for Post's decision. Sell As Is Acetone sales revenue Sunk cost of producing 79,000 L of acetone Process Cost of further processing Further Lacquer thinner sales revenue Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Post's decision? Why or why not? is a sunk cost that between the alternatives of selling as is or processing further. Consequently, this sunk cost is to the sell-or-process-further decision. The s Requirement 3. Should Post sell the acetone or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives, Calculate the expected net revenue difference between the two alternatives. (Leave any unused cells blank.) Post Chemical Sell As Is or Process Further Analysis Time Remaining: 02:24:05 Next