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Cantel Company produces cleaning compounds for both commercial and househoid customers. Some of these products are produced as part of a joint manufacturing process. For

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Cantel Company produces cleaning compounds for both commercial and househoid customers. Some of these products are produced as part of a joint manufacturing process. For example, GR37, a coarse deaning powder meant for commercial sale, costs $190 a pound to make and sells for $2.00 per pound. A portion of the annual production of GR37 is retained for further piocessing in a separate department where it is combined with several other ingredlents to form SilPol, which is sold as a siver polish, at $500 per unit. The additional processing requires 1/4 pound of GR37 per unir; additional processing costs amount to $3.80 per unit of SiPol produced. Variable selling costs for SilPol average $0,30 per unit. If production of Si:Pol were discontinued, $4,800 of costs in the processing department would be avoided. Cantel has, at this point, unlimited demand for, but limited capacity to produce, product GR37. Required: 1. Caiculate the minimum number of units of SilPol that would hove to be sold in order to justify further processing of GR37 2. Assume that the cost data reported for GR37 are obtained at a level of output equal to 6,300 pounds, which is the maximum that the company can produce at this time. What is the expected operating income (loss) under each of the following scenarios: (a) all avallable capacity is used to produce GR37, but no SilPol; (b) 10,000 units of SiPol are produced, with the bolance of capacity devoted to the production and sale of GR37; (c) 12,000 units of Si Pol are produced, with the balance of copacity devoted to the product on and sale of GR37; and (d) 14,000 units of SIIPol are produced, with the balance of capocity devated to the production and sale of GR37 Complete this question by entering your answers in the tabs below. Assume that the cost data reported for GR37 are obtained at a level of output equal to 6,300 pounds, which is the maximum that the company can produce at this time. What is the expected operating income (loss) under each of the following scenarios: (a) all available capacity is used to produce GR37, but no Salpol: (b) 10,000 units of Silpol are produced, with the balance of capacity devoted to the production and sale of GR37; (c) 12,000 units of SIPol are produced, with the balance of capacity devoted to the production and sale of GR37; and (d) 14,000 units of Salpol are produced, with the balance of capacty devoted to the production and sale of GR37. (Loss amounts should be indicated with a minus sion.) Ghow lets 4

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