Rouse Chemical has spent $244,000 to refine 73,000 gallons of acetone, which can be sold for $2.50 a gallon. Alternatively, Rouse Chemical can process the acetone further. This processing will yield a total of 62,000 gallons of lacquer thinner that can be sold for $3.00 a gallon. The additional processing will cost $0.45 per gallon of lacquer thinner. To sell the lacquer thinner, Rouse Chemical must pay shipping of $0.18 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 Rouse's decision? Why or why not? 2. Should Rouse sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. of Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Rouse's decision? Why or why not? amount spent to refine the differ between alternatives of selling as is or The acetone is a sunk cost that does not processing further. Consequently, this sunk cost $ 244,000 is irrelevant to the sell or process further decision. Requirement 2. Should Rouse sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. (Enter a "O" 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.) Process Further Difference Sell As Is Less: Net benefit to operating income per batch