Root Chemical has spent $245,000 to refine 73,000 gallons of acetone, which can be sold for $2.70 a gallon. Alternatively, Root Chemical can process the acetone further. This processing will yield a total of 61,000 gallons of lacquer thinner that can be sold for $3.30 a gallon. The additional processing will cost $0.40 per gallon of lacquer thinner. To sell the lacquer thinner, Root Chemical must pay shipping of $0.20 a gallon and administrative expenses of $0.10 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 Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Root's decision? Why or why not? is a sunk cost The 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 Root sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives (Enter a "U" for any zero amounts. Use a minus sign or parentheses in the Difference column if the Soll As is amount exceeds the Process Further amount.) aring Sell Process Ibrary Further Difference urces dy Modules Less: Net benefit to operating income per batch Elon Tools > Decision: Choose from any list or enter any number in the input fields and then continue to the next