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17 Overhead costs associated with processing the silver polish are: Variable manufacturing overhead cost Fixed manufacturing overhead cost (per month) 2 Production supervisor polnts Depreciation of mixing equipment of direct labor cost 3,aa The production supervisor has no duties other than to oversee production of the silver polish. The mixing equipment is special- purpose equipment acquired specifically to produce the silver polish. It can produce up to 11,500 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 S3,OOO per month. Variable selling costs associated with the silver polish are 5% of sales. Due to a recent decline in the demand for silver polish, the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powder. 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? (Round your answer to 2 decimal places.) 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? (Round your intermediate calculations and final answer to 2 decimal places.) 3. 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? (Round your intermediate calculations to 2 decimal places.) 4. If the company sells 7,500 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any "disadvantages" as a negative value. Round your intermediate calculations to 2 decimal places.) 5. If the company sells 10,400 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter any "disadvantages" as a negative value. Round your intermediate calculations to 2 decimal places.) Answer is complete but not entirely correct. 2. Incremental revenue Incremental contribution margin Number of jars that must be sold Financial advantage (disadvantage) Financial advantage (disadvantage) s s 3.10 e per jar 0.60 e per jar 10,000 per month