Problem 13-27 (Algo) Sell or Process Further Decisions (LO13-7] Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its peoducts we processed independert5y, a few are related, such as the company/s Grit 337 and its Sparble silver polah. Grit 337 is a coarse cleaning powder with many industrial uses. It costs $1.60 a pound to make, and it has a soling price of $3.20 a pound. A small portion of the ennual production of Gra 337 is retained in the factory for further processing. It is combined with severat other ingiedients to form a paste that is marketed as Sparkle silver polsh. The siver polish sells for $4.00 per jar. This further processing requires one-faurth pound of Grit 337 per jar of silver polish, The addstional direct variatie costs involved in the processing of a jar of siver polith are: Overtead corts essociated w th processing the siver patsh are. The production sippervisor has no duties other than to evernee production of the vilver polish the mixing equipment is speciat: puppose equipenent acquired specifically to produce the sivet potsh it can preduce up to 17000 jars of polsh per month. its resale value is neglaible and a does not wear out through use. Due to a recont decline in vie dempnd for siver polish, the company is wondering whether as continued pooduction is advisable. The sales manaper feeis that it woud be more prolisble to set all of the Git 337 at a clesning pawdor. Bequired: 1. How much incremertal revenue does the company earn per jar of polsh by further processing Git 337 rather than seling it as a deaning powder? (Round your answer to 2 decimal places.) 2. How much incremental contrbution margin does the compacy eam per jar of polish by fuather procesving Gra 337 rather than seling it as a cleaning powder? (Pound your intermediate calculations and final answer to 2 decimal piaces.) 3. How many jars of slver polsh must be sold each month to exacty offset the avoidable fored cous incuried to produce and ses the polish? (Round your intermediate calculations to 2 decimal places.) rather than seling it as a cleaning powder? (Enter any "disadvantages' as a segative value. Aound your intermediate caiculations to 2 decimal piacest) 5. If the company seils 17,000 jars of polish, what is the financial odvantsge faltadvantagel of choosing to further process Gitit 337 mather than soling is as a clearing powder "Enter eny "disadvantages" as e negative value. Aound your intermediate calculations to 2 decimal places.)