Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced Required:

Calculate the minimum number of units of SilPol that would have to be sold in order to justify further processing of GR$37.$

Assume that the cost data reported for GR$37$ are obtained at a level of output equal to $5,900$ 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 GR$37,$ but no SilPol; $($b$)3,000$ units of SilPol are produced, with the balance of capacity devoted

to the production and sale of GR$37$; $($c$)5,000$ units of SilPol are produced, with the balance of capacity devoted to the production and

sale of GR$37$; and $($d$)7,000$ units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR$37.$

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Required $2$

Assume that the cost data reported for GR$37$ are obtained at a level of output equal to $5,900$ 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 GR$37,$ but no SilPol; $($b$)3,000$ units of SilPol are produced, with the

balance of capacity devoted to the production and sale of GR$37$; $($c$)5,000$ units of SilPol are produced, with the balance of

capacity devoted to the production and sale of GR$37$; and $($d$)7,000$ units of SilPol are produced, with the balance of capacity

devoted to the production and sale of GR$37.($Loss amounts should be indicated with a minus sign.$)$

as part of a joint manufacturing process. For example, GR$37,$ a coarse cleaning powder meant for commercial sale, costs $$2\mathrm{.}20$ a

pound to make and sells for $$2\mathrm{.}40$ per pound. A portion of the annual production of GR$37$ is retained for further processing in a

separate department where it is combined with several other ingredients to form SilPol, which is sold as a silver polish, at $$5\mathrm{.}00$ per

unit. The additional processing requires $\frac{1}{4}$ pound of GR$37$ per unit; additional processing costs amount to $$3\mathrm{.}40$ per unit of SilPol

produced. Variable selling costs for SilPol average $$0\mathrm{.}30$ per unit. If production of SilPol were discontinued, $$3,500$ of costs in the

processing department would be avoided. Cantel has, at this point, unlimited demand for, but limited capacity to produce, product

GR$37.$

Required:

Calculate the minimum number of units of SilPol that would have to be sold in order to justify further processing of GR$37.$

Assume that the cost data reported for GR$37$ are obtained at a level of output equal to $5,900$ 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 GR$37,$ but no SilPol; $($b$)3,000$ units of SilPol are produced, with the balance of capacity devoted

to the production and sale of GR$37$; $($c$)5,000$ units of SilPol are produced, with the balance of capacity devoted to the production and

sale of GR$37$; and $($d$)7,000$ units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR$37.$

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Calculate the minimum number of units of SilPol that would have to be sold in order to justify further processing of GR$37.$

$($Round your answer to nearest whole number.$)$