Sell at Split-Off or Process Further Decision, Alternatives, Relevant 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 dofinol. The cost of processing one batch of compound is $78,500, and the result is 6,100 gallons of anderine and 8,000 galions of dofinol. Betram Chemicals can sell the anderine at spilt-off for $9.00 per gallon and the dofinol for $6.50 per gallon. Alternatively, the anderine can be processed further at a cost of $7.00 per gallon (of anderine) into cermine. It takes 2 gallons of anderine for every gallon of cermine. A gallon of cermine selis for $62. Required: 1. Which altemative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar, 2. What if the production of anderine into cermine required adiditional purchasing and quality inspection activity? Every 530 gallons of anderine that undergo further processing require 23 more purchase orders at $11 each and 16 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. Fostack * Ctwar wy womk 1. Set up the analysis with the relevant costs and revenues organized under a column heading for each alternative. What is the difference between the two