Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced a5 part of a joint manufacturing process. For example, GR37, a coarse cleaning powder meant for commerclal sale, costs $2.30 a pound to make and selis for $2.40 per pound. A portion of the annual production of GR37 is retained for further processing in a separate department where is is combined with several other ingredients to form SiPol, which is sold as a stiver polish, at $6.00 per unit. The additional processing requires 1/4 pound of GR37 per unit; additional processing costs amount to $4.20 per unit of SilPol produced Varieble seling costs for SiPol avetage $0.60 per unit. If production of SilPol wore discontinued, $7,200 of costs in the processing departinent would be avoided. Cantel has, at this point, untlmited demand for, tut limited capacity to produce, product GR37. Requiredt 1. Calculate the minimum number of units of SuPol that would have to be sold in order to justify further processing of GR37. 2. Assume that the cost dote reported for GR37 are obtained at a level of output equal to 6.700 pounds, which is the maximum that the company cen produce at this time. Whot is the expected operating income (oss) under each of the following scenarios: (a) all avallable capacity is used to produce GR37, bat no SiPol; (6) 10,000 units of SilPol gre produced, wath the balance of capacity devoted to the production and sale of GR37; (c) 12,000 units of Silipol are produced. with the balance of capacity devoted to the production and sale of GR37; and (d) 14,000 units of SiPol nee produced, with the balance of cepacity devoted to the production and sale of GR37. Complete this question by entering your answers in the tabs below. Calculate the minmum number of units of sipol that woula have to be sold in order to justify further processing of Ga37. (Hound your antwer to nearest whole number.) produced. Variable selling costs for SilPol average $0.60 per unit. If production of Silpol were discontinued, 57.200 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. Calculate the minimum number of units of SilPol that would have to be sold in order to justify further processing of GR37. 2. Assume that the cost dota reported for GR37 are obtained at a level of output equal to 6,700 pounds, which is the maximum trat the company can produce ot this time. What is the expected operating income (0oss) under each of the following scenarios: (a) all avallable capacity is used to produce GR37, but no SiPol; (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 SilPol are produced, with the balance of capacity devoted to the production and sale of GR37; and (d) 14,000 units of SaPol are produced, with the balance of capacity dovoted 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 6,700 pounds, which is the maximum that the company can produce ot this time. What is the expected operating income (loss) under each of the following scenarios: (a) all available capacity is used to produce Ga37, but no 5iPpol; (b) 10,000 units of Slipol are produced, with the balance of capacity devoted to the production and sale of G837; (c) 12,000 units of Sipol are produced, with the balance of capacity devoted to the production and sale of Ga37; and (d) 14,000 units of Silpol are procuced, with the balance of capocity devoted to the production and saie of GM37. (Loss amounts should be indicated with a minus sign.)
