This Quiz: 3 pts possib Smith Chemical has spent $245,000 to refine 70,000 gallons of acetone, which can be sold for $2.60 a gallon. Alternatively, Smith Chemical can process the acetone further. This processing will yield a total 64,000 gallons of lacquer thinner that can be sold for $3.20 a gallon. The additional processing will cost $0.75 per gallon of lacquer thinner. To sell the lacquer thinner, Smith Chemical must pay shipping of $0.25 a gallon and administrative expenses of $0.11 a gallon on the thinner. Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Smith's decision? Why or why not? 2. Should Smith 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 Smith's decision? Why or why not? The is a sunk cost that further. Consequently, this sunk cost of differ between alternatives of selling as is or processing to the sell or process further decision. IS Requirement 2. Should Smith 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.) Sell Process As Is Further Difference Less: Net benefit to operating income per batch Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search LAGE 40) ENG 10:29 PM 05