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 $76,500, and the result is 6,500 gallons of flexalene and 7,600 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $9.00 per gallon and the soreaphine for $5.80 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.70 per gallon (of flexalene) into lactine. It takes 3 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $60. 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. by $ 2. What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 580 gallons of flexalene that undergo further processing require 19 more purchase orders at $12 each and 18 more quality inspection hours at $24 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. by