Vision Chemical has spent $238,000 to refine 71,000 gallons of acetone, which can be sold for $2.30 a gallon. Alternatively, Vision Chemical can process the acetone further. This processing will yield a total of 63,000 gallons of lacquer thinner that can be sold for $3.20 a gallon. The additional processing will cost $0.80 per gallon of lacquer thinner. To sell the lacquer thinner, Vision Chemical must pay shipping of $0.21 a gallon and administrative expenses of $0.12 a gallon on the thinner. Requirement 1. Identify the sunk cost. Is the sunk cost relevant to Vision's decision? Why or why not? The further. Consequently, this sunk cost of is a sunk cost that is Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Vision's decision? Why or why not? 2. Should Vision sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two alternatives. differ between alternatives of selling as is or processing to the sell or process further decision.

gation on the thinner. Alrquiremants 1. Identfy the surk cost, is the sutik cont reievant to Vachir decision? Why of Why nod? expectad net rovenue diflerecoe betwieen the tho ahemabves. \begin{tabular}{|c|c|c|} \hline The & lis a surk cost that & \\ \hline & & \\ \hline \end{tabular} Requirements 1. Identify the sunk cost. Is the sunk cost relevant to Vision's decision? Why or why not? 2. Should Vision sell the acetone as is or process it into lacquer thinner? Show the expected net revenue difference between the two altematives