Rouse Petroleum has spent $206,000 to refine 63,000 gallons of petroleum distillate, which can be sold for $6.30 per gallon. Alternatively, Rouse can process the distillate further and produce 56,000 gallons of cleaner fluid. The additional processing will cost $1.85 per gallon of distillate. The cleaner fluid can be sold for $9.00 per gallon. To sell cleaner fluid, Rouse must pay a sales commission of $0.14 per gallon and a transportation charge of $0.16 per gallon.Requirement 1. Fill in the diagram for Rouse's alternatives. Revenues from selling as is Joint costs 396900 of producing 63.000 gallons of petroleum distillate Cost of Revenues from -206000 processing processing further further -133350 504000Requirement 2. Identify the sunk cost. Is the sunk cost relevant to Rouse's decision? The $206,000 spent to refine the petroleum distillate | is a sunk cost that does not |differ between the alternatives of selling as is or processing further. Consequently, this sunk cost is irrelevant to the sell-or-process-further decision. Requirement 3. Should Rouse sell the petroleum distillate or process it into cleaner fluid? Show the expected net revenue difference between the two alternatives. (For the difference in total net revenue, use a parentheses or a minus sign if processing further will decrease total net revenue.) Process Sell As Is Further Difference Expected revenue from selling 63,000 gallons of petroleum distillate 396900 Expected revenue from selling 56,000 gallons of cleaner fluid 504000 134100 Additional costs of processing -133350 133350 Total net revenue 396900 370650 750 Decision: Sell as is