Root Petroleum has spent $208,000 to refine 61,000 gallons of petroleum distillate, which can be sold for $6.20 per gallon. Alternatively, Root can process the distillate further and produce 58,000 gallons of cleaner fluid. The additional processing will cost $1.70 per gallon of distillate. The cleaner fluid can be sold for $9.20 per gallon. To sell cleaner fluid, Root must pay a sales commission of $0.14 per gallon and a transportation charge of $0.15 per gallon. Read the requirements Requirement 1. Fill in the diagram for Root's alternatives. Requirements Revenues from selling as is Joint costs 1. Fill in the diagram for Root's alternatives. 2. Identify the sunk cost. Is the sunk cost relevant to Root's decision? 3. Should Root sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. of producing 61,000 gallons of Print Done petroleum distillate Cost of Revenues from --> processing further processing further