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Problem 13-27 (Algo) Sell or Process Further Decisions [LO13-7] Come-Clean Corporation peoduces a voriety of cleaning cerpounds and solutians for beth industrial and household use.

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Problem 13-27 (Algo) Sell or Process Further Decisions [LO13-7] Come-Clean Corporation peoduces a voriety of cleaning cerpounds and solutians for beth industrial and household use. While most of ts products are processed independenty, a few are related, such as the company's Gri, 337 and its Sparke siluer polish. Grit 337 is a cearse clearing powder whinary industrial uses. It costs $1.60 a pound to mahe, and it has a seling price of $7.40 a pound. A smali portion of the annusl production er Grit 337 is retained in the foctory for further processing. it is combined with several other ingedients to form a paste that is marketed as 5 parkle slver polish. The sfver polish sels for 55 . oo per jat. This further processing requies one-fourth peund of Gris 337 per jar of silver polbh. The bdditional dirtect wariable costs involvod in the pecestrig of a jar of slver polish bre: Overhead costs associated wha processing the siker polish se: The productige superviser has no duties other than to oversee production of the niver polish. The mixing equpenent is speciafpurpese equptment acquired specifically to produce the sever polish it can peoduce ug to 18,000 jars of polish per month. Its resaie value is negigible and it does not weer out through use. Adventing costs for the viver polith tocal 53,000 per month. Variable seing costs associated with the sever polish are 5% of syies. Due to a resent declire in the dembnd for sllvet poinh, the company is wondering whether as continued proctuctien is advissble The sales marager feets thet 7 wold be more profitable to set all of the Grit 337 as a cleaning powder. Aequired: 1. Hore much increthental tevenue does the compary earn per jer of polish by further processing Grit 377 rather than seilng it as a cleaning powider? (Round your anwwer to 2 decimal places) selang 2 bs a cleaning powder? iRound your intermediate calculations and find answer to 2 decimal places. polish? (Aound your lhtermediote calculations to 2 decimal plscest) decimal peaces? ther than seling is as a clearing powder? (Enter any "disadvaruages" as a negative value. Round vour intermediate caleulations is a epcimal places.)

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