Vihaan chemicals company processes, a number of 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 $and the result isgallons of flexalene andgallons of soreaphine. Vihaan chemicals can sell the flexalene that split off for nine dollars per gallon and the soreaphine for $per gallon. Alternatively, the flexalene can be processed further at a cost of $per gallon into lactine. It takesgallons of flexalene for every gallon of lactine. A gallon of lactine sells for $

Required:

Which alternative is more costeffective and by how much?

what if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every gallons of flexalene The undergo further processing require more purchase orders at $ each and more quality inspection hours at $ each. Which alternative would be better and by how much?

Answer rating: 100% (QA)

answer Lets calculate the costeffectiveness of each alternative Without Further Processing Cost of processing one batch 76000 Gallons of flexalene pro... View the full answer