3 Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently a few are related, such as the company's Grit 337 and its Sparkle silver polish Grit 337 is a coarse cleaning powder with many industrial uses. It costs $120 a pound to make, and it has a selling price of $6.80 a pound. A small portion of the annual production of G 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as Sparkle silver polishThe silver polis sells for $5.00 per jac This further processing requires one-fourth pound of Gr 337 per jar of silver polish. The additional direct variable costs involved in the processing of a jar of silver polish are: Other Ingredients 30.55 Direct labor Total direct cost $1.91 Overhead costs associated with processing the silver polishare Variable sufacturing overhead cost 25 of direct labor cost Fixed manufacturing overhead cont (per month Production supervisor $ 3,20 Depreciation of it The production supervisor has no duties other than to oversee production of the silver polish The maing equipment is special purpose equipment acquired specifically to produce the silver polish. It can produce up to 3.000 jars of polish per month. Its resale value is negligible and it does not wear out through use. Advertising costs for the silver polish total 54.800 per month. Variable selling costs associated with the silver polish are 5% of sales. Due to a recent decline in the demand for silver polish the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to set it of the Grit 337 as a cleaning powder Required: 1 How much incremental revenue does the company com per jar of posh by further processing Geit 337 rather than selling it as a cleaning powder (Round your answer to 2 decimal places.) 2. How much incremental contribution margin does the company earn per jar of polish by further processing Gt 337 rather than celling it as a cleaning powder? (Round your intermediate calculations and final answer to 2 decimal places.) 3. How manyjars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and set the polish Round your intermediate calculations to 2 decimal places 4. If the company sells 8.900 ars of polis, wat is the financial advantage disadvantages of choosing to further process it 337 rather than selling is as a cleaning powdert(inter any disadvantages or negative value. Round your intermediate calculations to 2 decimal places 5. If the company sets 12.000 jars of polis what is the financial advantage osadvantage of choosing to further process Grit 337 Depreciation of miscing equipment The production supervisor has no duties other than to oversee production of the silver polish. The mixing equipment is special- purpose equipment acquired specifically to produce the silver polish. It can produce up to 3,000 jars of polish per month. Its resale value is negligible and it does not wear out through use. Advertising costs for the silver polish total $4,800 per month. Variable selling costs associated with the silver polish are 5% of sales. Due to a recent decline in the demand for silver polish, the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powdet. Required: 1. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? (Round your answer to 2 decimal places.) 2 How much Incremental contribution margin does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? (Round your Intermediate calculations and final answer to 2 decimal places.) 3. How manyjars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and sell the polish? (Round your intermediate calculations to 2 decimal places.) 4. If the company sells 8,900 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any disadvantages" as a negative value. Round your Intermediate calculations to 2 decimal places.) 5. If the company sells 12,000 jars of polist what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any disadvantager as a negative value. Round your intermediate calculations to 2 decimal places.) 1 Incremental revenue 2. Incremental contribution margin Number of that must be sold 4. Financial advantage disadvantage) 5. Financial advantage (disadvantage) perjar perja per month vee Ch 13 0 Come Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently a few are related, such as the company's Grit 337 and its Sparkle silver polish. Grit 337 is a coarse cleaning powder with many industrial uses. It costs $1.20 a pound to make, and it has a selling price of $6.80 a pound. A small portion of the annual production of Grit 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as Sparkle silver polish. The silver polish sells for $5.00 per jar. This further processing requires one-fourth pound of Grit 337 per jar of silver polish. The additional direct variable costs involved in the processing of a jar of silver polish are: Other Ingredients $ 8.55 Direct labor Total direct cost 1.36 $ 1.91 Overhead costs associated with processing the silver polish are Variable manufacturing overhead cost 25% of direct labor cost Fixed manufacturing overhead cont (per month) Production supervisor 53,20 Depreciation of mixing equipment 51,600 The production supervisor has no duties other than to oversee production of the silver polish. The mixing equipment is special purpose equipment acquired specifically to produce the silver polish. It can produce up to 3.000 jars of polish per month its resale value is negligible and it does not wear out through use Advertising costs for the silver polish total $4,800 per month. Variable selling costs associated with the silver polish are 5 of sales. Due to a recent decline in the demand for siver polish the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powder. Required: 1. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than selling le as a cleaning powder? (Round your answer to 2 decimal places.) 2 How much incremental contribution margin does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? (Round your intermediate calculations and final answer to 2 decimal places.) 3. How manyjars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and sell the poish? (Round your intermediate calculations to 2 decimal places.) 4. If the company sells 8.900 jars of pollsh. What is the financial advantage (disadvantage of choosing to further process Gt 237 rather than selling is os e cleaning powder? (Enter any disadvantages" es o negative value. Round your Intermediate calculation to 2 decimal places) the company in 200S Depreciation of riding equipment The production supervisor has no duties other than to oversee production of the silver polish. The mixing equipment is special- purpose equipment acquired specifically to produce the silver polish. It can produce up to 3,000 jars of polish per month. Its resale value is negligible and it does not wear out through use. Advertising costs for the silver polish total $4800 per month. Variable selling costs associated with the silver polish are 5% of sales. Due to a recent decline in the demand for silver polish, the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powder Required: 1. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? (Round your answer to 2 decimal places.) 2. How much incremental contribution margin does the company earn per jar of polish by further processing Grit 337 rather than celling it as a cleaning powder? (Round your Intermediate calculations and final answer to 2 decimal places.) 3. How many Jars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and sell the polish? (Round your Intermediate calculations to 2 decimal places.) 4 the company sells 8,900 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any disadvantages as a negative value. Round your Intermediate calculations to 2 decimal places.) 5. If the company sells 12.000 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any disadvantages as negative value. Round your intermediate calculatione to 2 decimal places) perja perja Incremental revenue 2. Incremental cortbuton margin 3. Number of as that must be sold 4. Financial advantage (disadvantage) 6. Financial advantage disadvantage per month Prey Next