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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

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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 sre 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 $4,00 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 Sporkte silver polish. The stiver polish sells for $4,00 per lar. This further processing requires one-fourth pound of Grit 337 per jar of siver polish. The addisional direct variable costs involved in the processing of a jar of siver poilsh are: Overhead costs associated with processing the silver polish are. The production supervisor hos no duties other than to oversee production of the silver polish. The miking equipment is special-purpose equipment acquired specifically to produce the silver polith. It con produce up to 17,400 jars of polish per month. its resale value is negligible and it does not wear out through use. Advertsing costs for the silver polish total $4,943 per month. Variable seling costs associated with the siver polish are 75% of sales. Due to a recent decline in the dernand for silver polish, the company is wondering whether its continued production is advisabie. The soles manoger feels that it would be more profitable to sell all of the Grit 337 as a cleaning powdet. Aequired: 1. How much incremental fevenue does the company eam per jer of polish by turther processing Gnt 337 rather than teling it as a cleaning powder? (Pound your answer to 2 decimal placet) 2. How much incremintal contribution margin does the company eam per jar of pellsh by further processing Grit 33 ? rather than seling it as a cleaning powder? (Aound your intermedlate calculations and final answer to 2 decima! places.) 3 How many jars of siver poliph must be sold each month to exactly offset the avoidable ficed costs incurred to produce and sell the polistre (Aound your intermediate calculations to 2 declimat places.) A if the compony selis 13,800 jars of polish, whot is the financlal advantage (disadvantage) of choosing to further vour intermediate calculations to 2 decimal places.) your intermediate calculations to 2 decimal places.)

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