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 $75,000, and the result is 6,200 gallons of anderine and 8,200 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $6.65 per gallon. Alternatively, the anderine can be processed further at a cost of $8.90 per gallon (of anderine) into cermine. It takes 2 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $59. 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 540 gallons of anderine that undergo further processing require 20 more purchase orders at $12 each and 13 more quality inspection hours at $22 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. Process it further by $fill in the blank
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 $75,000, and the result is 6,200 gallons of anderine and 8,200 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $6.65 per gallon. Alternatively, the anderine can be processed further at a cost of $8.90 per gallon (of anderine) into cermine. It takes 2 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $59.
2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 540 gallons of anderine that undergo further processing require 20 more purchase orders at $12 each and 13 more quality inspection hours at $22 each. Which alternative would be better and by how much?
NOTE: Round interim calculations and your final answer to the nearest cent.
Process it further by $fill in the blank
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