I just need help to answer this questions.You can check my solution that I did on this attachment that i attached.

(a)Which of the four polymers should be processed further and then sold, and which polymers should be sold immediately without further processing?

(b)Should polymtech be producing batches of these four polymers?

(c)What is the maximum cost per batch (excluding any further processing costs) that polymtech is willing to incur before polymtech stops producing batches of these four polymers? Assume that all selling prices and further processing costs do not change.

(d)To analyze the relative profitability of the four polymers, allocate the batch production cost of $2090 to each of the four polymers using the number of grams of each polymer produced in the batch as the allocation base. Which polymer is the most and which polymer is the least profitable after allocating the $2090 batch cost?

(e)Based on your analysis in part (d) recommend action that management can take to improve the profitability of producing batches of these four polymers.

Nelli Mwalilino Chapter 8 Problem 8-18 The cost of production per gram is $2.09 which is (2090)/1000 Calculate the net profit per gram before processing as shown below Product Sales price without further processing Less:Cost per gram Net profit/(loss)before processing per gram N200 HV87 HMT45 W989 $1.89 $2.93 $3.30 $0.76 2.09 2.09 2.09 2.09 ($0.20) $0.84 $1.21 ($1.33) To calculate the net profit per gram before processing Product N200 HV87 HMT45 W989 Sales price without further processing (a) 3.65 3.44 4.1 2.17 Cost per gram before processing 2.09 2.09 2.09 2.09 Cost per gram of further processing 0.73 0.53 0.82 0.37 Total cost (b) 2.82 2.62 2.91 2.46 Net profit /(loss)after processing per gram (a)-(b) 0.83 0.82 1.19 -0.29 Compare the net profits to decide of further processing Product N200 HV87 HMT45 W989 Net profit/(loss)before processing per gram ($0.20) $0.84 $1.21 ($1.33) Net profit/(loss)after processing per gram 0.83 0.82 1.19 -0.29 Further processing YES NO NO YES The firm should opt for further processing if the net profit/(loss)after processing is more than net profit /(loss)before proce profit /(loss)before processing. b.Calculate the total profit of the batch as shown Product Before Processing Net profit /(loss)before processing per gram Total grams per batch Net profit /(loss)before processing After processing Net profit /(loss)after processing per gram Total grams per batch Net profit /(loss) before processing per gram N200 HV87 HMT45 W989 Total ($0.20) $0.84 $1.21 ($1.33) $0.52 200 300 150 350 1000 ($40.00) $252.00 $181.50 ($465.50) ($72.00) 0.83 200 166.00 0.82 300 246.00 1.19 150 178.50 -0.29 350 -101.50 2.55 1000 489 As the total profit before processing report a net loss the entity should stop the production of the batch.However the profi c.Maximum cost per batch to incur (ignoring the further processing costs).As no margin is specified ,the maximum cost the Product a.Sales price without further processing b.Total grams per batch c.Revenue (a)*(b) Therefore,the maximum cost per batch is $2018 N200 HV87 HMT45 W989 Total $1.89 $2.93 $3.30 $0.76 200 300 150 350 1000 $378.00 $879.00 $495.00 $266.00 $2,018.00 he batch.However the profit after processing report a net profit,the entity can continue its production of the batch. fied ,the maximum cost the firm is willing to incur is equal to the revenue from the batch which is calculated d.To Compute the maximum and least profitable product after allocating the batch cost. Profit before processing Product a.Sales price without further processing b.Total grams per batch c.Revenue (a)*(b) d.Cost of production in the ratio( c) (2:3:1.5:3.5) e.Net profit(c ) -(d ) The profit after processing Product a.Sales price without further processing b.Total grams per batch c.Revenue (a)*(b) Costs: d.Cost of production in the ratio (c )(2:3:1.5:3.5) e.Cost per gram of further processing f.Cost of further processing (e )*( b) g.Total Cost Net profit after processing (c )- (g ) N200 HV87 HMT45 $1.89 $2.93 $3.30 200 300 150 $378.00 $879.00 $495.00 418.00 627.00 313.50 ($40.00) $252.00 $181.50 N200 3.65 200 730.00 HV87 3.44 300 1032.00 HMT45 4.10 150 615.00 418.00 0.73 146.00 564.00 166.00 627.00 0.53 159.00 786.00 246.00 313.50 0.82 123.00 436.50 178.50 The maximum and least profitable products are mentioned Stage Before Processing After Processing Maximum Profitable HV87 HV87 Least profitable W989 W989 Therefore,at both the stages the most profitable product is HV87 and least profitable product is W989 W989 Total $0.76 350 1000 $266.00 $2,018 731.50 2090.00 ($465.50) W989 oduct is W989 2.17 350 759.50 731.50 0.37 129.50 861.00 -101.50 Total 1000 3136.5 2090.00 e.As per the analysis in subpart (d)the entity should analyze the siatuation Product Net profit before processing Net profit after processing Further processing Net profit N200 HV87 HMT45 W989 Total ($40) $252 $181.5 ($465.5) ($72) 166 246 178.5 -101.5 489 Yes No No Yes 166 $252 $181.5 -101.5 498 The entity should not further process the products HV87 and HMT45 and there by it can increase the profit of the batch to he profit of the batch to $498