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 $72,500, and the result is 6,300 gallons of flexalene and 8,100 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $13.00 per gallon and the soreaphine for $5.70 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.20 per gallon (of flexalene) into lactine. It takes 3 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $60.

What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 510 gallons of flexalene that undergo further processing require 19 more purchase orders at $8 each and 17 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.