Rouse Chemical has spent $246,000 to refine 73,000 gallons of acetone, which can be sold Requirements for $2.00 a gallon Alternatively, Roune Chemical can process the actone further. This 1. Identify the sunk cost is the sun cost relevant to Rouse's decision? Why or why not? processing will yield a total of 58,000 gallons of lacquer thinner that can be sold for $3.10 a 2. Should Rouse sell the acetone as is or process it into lacquer thinner? Show the gallon. The additional processing will cost $0.76 per gallon of lacquer thinner. To sell the expected net revenue difference between the two natives lacquer thinner, Rouse Chemical must pay shipping of $0.23 a gallon and administrative expenses of $0.14 a gallon on the thinner. Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Rouse's decision? Why or why not? is a sunk cost The that differ between alternatives of selling as is of processing further. Consequently, this sunk cost of $ 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 (Entar ao for any rer amounts. Use a minus sign or parentheses in the Difference column if the Sell As is amount exceeds the Process Further amount) Sell Process As is Further Difference Less Net benefit to operating income per batch Decision