Exercise 11-28 Sell-or-Process-Further Decision; Product Mix [LO 11-4, 11-7) Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced as part of a joint manufacturing process. For example, GR37, a coarse cleaning powder meant for commercial sale, costs $2.30 a pound to make and sells for $2.40 per pound. A portion of the annual production of GR37 is retained for further processing in a separate department where it is combined with several other ingredients to form SlPol, which is sold as a silver polish, at $5.00 per unit. The additional processing requires 1/4 pound of GR37 per unit; additional processing costs amount to $3.30 per unit of Silpol produced. Variable seiling costs for Siipol average $0.20 per unit. If production of SilPol were discontinued, $6,300 of costs in the processing department would be avoided. Cantel hos, at this point, unlimited demand for, but limited capacity to produce, product GR37. Required 1. Calculate the minimum number of units of Sipol that would have 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 5,800 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 Siipol: (b) 6,000 units of Sipol ore produced, with the balance of copacity devoted to the production and sale of GR37; () 7.000 units of SilPol are produced, with the balance of copacity devoted to the production and sale of GR37, and (d) 9.000 units of Sipol are produced, with the balance of capacity devoted to the production and sale of GR37, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the minimum number of units of silpol that would have to be sold in order to justify further processing of GR37. (Round your answer to nearest whole number) Minimum number of units of Pol Required 2 > Exercise 11-28 Sell-or-Process-Further Decision; Product Mix [LO 11-4, 11-7) Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced as part of a joint manufacturing process. For example, GR37 a coarse cleaning powder meant for commercial sale, costs $2.30 a pound to make and sells for $2.40 per pound. A portion of the annual production of GR37 is retained for further processing in a separate department where it is combined with several other ingredients to form Sipol, which is sold as a silver polish at $5.00 per unit. The additional processing requires 1/4 pound of GR37 per unit additional processing costs amount to $3 30 per unit of Siipol produced. Vanable selling costs for Sipol average $0.20 per unit. If production of SiPol were discontinued. $6,300 of costs in the processing department would be avoided Cantel has, at this point, unlimited demand for but immed capacity to produce product GR37 Required 1 Calculate the minimum number of units of Sipol that would have to be sold in order to justily further processing of GR37 2. Assume that the cost data reported for GR37 are obtained at a level of output equal to 5 800 pounds, which is the maximum that the company can produce at this time. What is the expected operating income foss) under each of the following scenarios (a) all available capacity is used to produce GR37, but no Sipo. (b6.000 units of Sipolare produced, with the balance of capacity devoted to the production and sale of GR37, 197,000 units of Sipolare produced, with the balance of capacity devoted to the production and sale of GR37, and id) 9,000 unts of Sipolare produced, with the balance of capacity devoted to the production and sale of GR37 Complete this question by entering your answers in the tabs below. Required Required Assume that the cost data reported for 37 are obtained at level of output equal to 5.000 pounds which is the maximum that the company can produce at this time. What is the spected operating income (loss) under each of the following scenarios (a) all valable capacity is used to produce G7, but ne Sol (6.000 unit of Polare produced with the balance of capacay devoted to the production and sale of an (s) 7.600 nits of Silolare produced, with the balance of tapacity devoted to the production and sale of Ra and (d) 9.000 units of spelare produced with the balance of capacity devoted to the reduction and sale of 37. Les mots should be indicated with me c00