Preston Chemical has spent $239,000 to refine 73,000 gallons of acetone, which can be sold for $1.90 a gallon. Alternatively, Preston Chemical can process the acetone further. This processing will yield a total of 65,000 gallons of lacquer thinner that can be sold for $3.10 a gallon. The additional processing will cost $0.55 per gallon of lacquer thinner. To sell the lacquer thinner, Preston Chemical must pay shipping of $0.24 a gallon and administrative expenses of $0.11 a gallon on the thinner. Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Preston's decision? Why or why not? 2. Should Preston 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 Preston's decision? Why or why not? The further. Consequently, this sunk cost of is a sunk cost that differ between alternatives of selling as is or processing to the sell or process further decision Requirement 2. Should Preston 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) Less Net benefit to operating income per batch Decision: Sell Process As Is Further Difference