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please answer questions 1 through 5! that is all of the information needed to solve Come-Clean Corporation prodtuces a variety of clearing compounds and solutions
please answer questions 1 through 5!
that is all of the information needed to solve
Come-Clean Corporation prodtuces a variety of clearing compounds and solutions for bath lndustrial and household ise. While most or ite products are processed independently a few are related, such as the company's Grit 3 ar and its Sparhde siver pollsh. Grit 337 is a coarse deaning powder with mary hidustrial uses. M costs $1.20 a pound to make. and m has a selfng price of \$3.60 o pound. A smal poction of the aniwiat protluction of erit 337 is retahed in the fictary for further processing. It is combined with severat ather ligredents 80 form a poste that Is marketed as Sparkie stver polsh. The silver polish sells for $4.00 per jar. This Nurther processing reqaites one-fourth pound of Geit 337 per jor of silver polsh. The additional direct variatie costs involved in the processing of a ]ar of silver polish are: Overheod costs associated with processing the stver pollsh are: The production supervisor has no duties ather than to aversee production of the slver polsh. The mixing equipenent is specistpurpose equipment ocquired specilicaly to produce the siver pollsh. It can produce up to ta,soo jars of poish per month. its resale value is neglglale and in does not wear out through Lae. Advertising costs for the silver pollah total $2700 per month. Variable selling costs assoclated with the silver poish are 57 of saies. Due to a recent decine in the demand for silver poilsh, the company is wandering whether its continued production ts advisable. The sales mansger feels that it would be more protitable ta sell all of the Git 337 as a cieaning powdet. Required: 1. How much incremental revenue does the compamy earn per jor of polish ty further processing Grit 337 rather than selling 2 as a cleaning powder? (Round your answer to 2 declmel places.) 2. How much inciemental contrbution margn does the compony earn per jar of polleh by further processing Grin 337 rather than seling it as a deaning powder? (Hound your Intermediate calculattons and fhal answer to 2 decimal ploces.) 3. How many jars of sitver polish must be sold esch month to exactly offset the avoldable fixed coats incurred to prodice and sell the polst?? (Round your intermedlate calculations to 2 declimal places.) 4. If the compary seis 12,900 jars of poilsh, what is the finoncial actvantoge (dsadvantage) of choosing ta further pracess Gnt 337 rother than selting it as a clearihg powder? (Enter any "disndvantages" as a negative value. Round your Intermedlate caiculations to 2 decimal places.) 5. If the compony sells 15,000 jars of poish, what is the fnancial advantage (disadvartage) of choosing to further process Grin 337 rather than selling is as a cleaning powder? (Enter any "disadvontages" as a negative value. Round your Intermedlate caleulations to 2 declmat places.) Step by Step Solution
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