Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health cub fitness
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health cub fitness equipment. One compound is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is 577,500, and the result is 5,800 gatons of females and 3.500 sono soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $11.00 per gallon and the soreachine for $5.55 per qilon. Alternatively, the theatre can be processed further at a cost of $8.40 per gallon (of flexcalene) into lactine. It takes 3 gallons of flexcalene for every pallon of lactine. Apation of lactine cells 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 s 2. What if the production of floxalene into lactine required additional purchasing and quality inspection activity ? Every 460 gallons of fluxalene that undergo further processing require 19 more purchase orders at $12 each and 14 more quality inspection hours at $28 cach. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. Sell at split-off by s
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started