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Sell at Split$-$Off or Process Further Decision, Alternatives, Relevant Costs

Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $$75,500,$ and the result is $6,000$ gallons of anderine and $7,700$ gallons of dofinol. Betram Chemicals can sell the anderine at split$-$off for $$10\mathrm{.}00$ per gallon and the dofinol for $$7\mathrm{.}20$ per gallon. Alternatively, the anderine can be processed further at a cost of $$8\mathrm{.}90$ per gallon $($of anderine$)$ into cermine. It takes $4$ gallons of anderine for every gallon of cermine. A gallon of cermine sells for $$57.$

Required:

Which alternative is more costieffective and by how much?

NOTE: DO NOT round interim calc$4$ Alpha$-$numeric input field ound your answer to the nearest dollar.

Sell at split$-$off by $

$2.$ What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every $480$ gallons of anderine that undergo further processing require $18$ more purchase orders at $$9$ each and $15$ more quality inspection hours at $$26$ each. Which alternative would be better and by how much?

NOTE: Round interim calculations and your final answer to the nearest cent.

$$ by $

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