Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compound is decomposed into two chemicals: fexalene and soreephine. The cost of processing one batch of compound is $29,000, and the result is 6,300 gallons of flexalene and 7,500 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at spit-off for $11.00 per gallon and the soreaphine for $5.70 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.00 per gallon (of flexalene) into lactine. It takes 2 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $62. Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. Process it further by 108,990 X 2. What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 450 gallons of flexalene that undergo further processing require 22 more purchase orders at $9 each and 16 more quality inspection hours at $25 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. Process it further by 108,392 X