Save Stenback Chemical has spent $244,000 to refine 73,000 gallons of acetone, which can be sold for $1.90 a gallon. Alternatively, Stenback Chemical can process the acetone further This processing will yield a total of 65,000 gallons of lacquer thinner that can be sold for $3.50 a gallon. The additional processing will cost $0.55 per gallon of lacquer thinner. To sell the lacquer thinner, Stenback Chemical must pay shipping of $0.24 a gallon and administrative expenses of $0.12 a gallon on the thinner. Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Stenback's decision? Why or why not? 2. Should Stenback 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 Stenback's decision? Why or why not? The amount spent to refine the acetone is a sunk cost that further. Consequently, this sunk cost of S 244,000 s does not differ between atematives of selling as is or processing imrelevant to the sell or process further decision. Requirement 2. Should Stenback sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. (Enter a "0" 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) Sales revenue Less Additional processing costs to convert lacquer thinner Net benefit to operating income per batch Help me solve this Video Get more bein. Sell Process Asis Further Difference reate Feb Feb- Jan S Jan