Stenback Chemical has spent $246,000 to refine 72,000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Stenback Chemical can process the acetone further. This processing will yield a total of 60,000 gallons of lacquer thinner that can be sold for $3.10 a gallon. The additional processing will cost $0.85 per gallon of lacquer thinner. To sell the lacquer thinner, Stenback Chemical must pay shipping of $0.25 a gallon and administrative expenses of $0.13 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 is a sunk cost that further. Consequently, this sunk cost of is differ between alternatives of selling as is or processing to the sell or process further decision. containers portions Sales revenue per unit $ 5.00 $ 0.48 Less: Additional processing costs per unit-packaging (0.10) (0.08) Additional processing costs per unit-adding fruit 0.00 (0.12) Net benefit per unit $ 4.90 $ 0.28 525 Number of units produced per batch 11,200 $ 2,573 $ 3,136 Net benefit per batch Based on this analysis, it is more profitable to sell fruited yogurt as individual portions . As long as there is a demand for individual portions