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: flexalene and soreaphine. The cost of processing one batch of compound is $125,000, and the result is 5,000 gallons of flexalene and 10,000 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $7 per gallon and the soreaphine for $9 per gallon. Alternatively, the flexalene can be processed further at a cost of $10 per gallon (of flexalene) into lactine. It takes 5 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $95. Required: 1. Which alternative is more cost effective and by how much? by $ 2. What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 100 gallons of flexalene that undergo further processing require 25 more purchase orders at $5 each and 10 more quality inspection hours at $17 each. Which alternative would be better and by how much? by