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Sell at Split-0.f or Process Further Decision, Artemstives, Reievant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products.

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Sell at Split-0.f or Process Further Decision, Artemstives, Reievant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dotinol. The cost of processing one bateh of compound is $76,500, and the result is 6,000 gallions of anderine and 7,500 gallons of dofinol. Betram Chemicals can sell the anderine at split-ott for $12.00 per gallon and the dofinol for $6.00 per gallion. Afternatively, the anderine can be processed further at a cost of $8.50 per 9allion (of anderine) into cermine. It takes 4 gallons of anderine for every galion of cermine, A gallon of cermine selis for 162 . Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, found your answer to the nearest dollar: by 3 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 450 gations of anderine that undergo further processing require 21 more purchase orders at $12 each and 14 more quality inspection hours at $26 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. by 1

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