Problem 13-29 (Algo) Sell or Process Further Decisions [LO13-7] Come-Clean Corporation produces a variety of cleaning compounds including Grit 337 and Sparkle silver polish. Grit 337 is a coarse cleaning powder that costs $1.20 a pound to make and selis for $7,40 a pound, A small portion of Grit 337 is combined with several other ingredients and further processed into Sparkle silver polish. The silver polish sells for $5.00 per jar. This further processing requires one-fourth pound of Grit 337 per jar of siver polish. The additional variable manufacturing costs per jar of silver pollsh are: Overhead costs assoclated with processing the silver polish are: Varlable manufacturinf overthead cost Fixed eanufacturing overhead cont (per ponth) Preductson subervilior 25X of direct labor cost I 3.4ee Overhead costs associated with processing the silver polish are: The production supervisor has no duties other than overseeing production of the silver polish. The mixing equipment is specialpurpose equipment acquired specifically to produce the silver polish. It can produce up to 12,000 jars of polish per month. Its resale value is negligible and it does not wear out through use. Advertising costs for the silver polish total $2.600 per month. Variable seling costs for the silver polish are 5% of sales. Due to a decline in the demand for silver polish, the company is considering selling all of its Grit 337 for $7.40 per pound and discontinuing Sparkle silver polish. Required: 1. How much Incremental revenue does the company earn per jar of polish by further processing Grit 337 rother than seliling it as a cleaning powder? Ue to a decline in the demand for silver polish, the company is considering selling all of its Grit 337 for $7.40 per pound and iscontinuing Sparkle silver polish. Required: 1. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? 2. How much incremental contribution margin does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? 3. How many jars of silver polish must be sold each month to exactly offset the avoldable fixed costs incurred to produce and sell the polish? 4. If the company sells 8,400 jars of polish, what is the financial advantage (disadvantage) of choosing fo further process Grit 337 rather than selling it as a cleaning powder? 5. If the company sells 11,700 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling it as a cleaning powder? 5. If the company sells 11,700 Jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit rather than selling it as a cleaning powder? Complete this question by entering your answers in the tabs below. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than selling it as a cleaning powder? Note: Round your answer to 2 decimal places. If the company sells 11,700 jars of polish, what is the financial advantage (dlsadvantage) of choosing to further process Grit 337 rather than selling it as a cleaning powder? Complete this question by entering your answers in the tabs below. How much incremental contribution margin does the company earn per for of polish by further processing Grit 337 rather than selling it as a cleaning powder? Noter: Round your intermediate calculations and final answer to 2 decimal places: 5. If the company sells 11,700 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit rather than selling it as a cleaning powder? Complete this question by entering your answers in the tabs below. How many jars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and sell the polish? Note: Round your intermediate calculations to 2 decimal places. If the company sells 11,700 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling it as a cleaning powder? Complete this question by entering your answers in the tabs below. If the company sells 8,400 jars of polish, what is the financial advantage (disadvantage) af choosing to further process Grit 337 rather than selling it as a cleaning powder? Note: Enter any "disedvantages" as a negative valie. Round your intermediate calculations to 2 decimal places. 5. If the company sells 11,700 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit rather than selling it as a cleaning powder? Complete this question by entering your answers in the tabs below. If the company sells 11,700 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling it as a cleaning powder? Note: Enter any "disadvantages" as a negative value. Round your intermediate calculations to 2 decimal places
