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xercise 11-28 (Static) Sell-or-Process-Further Decision; Product Mix [LO 11-4, 11-7] antei Company produces cieaning compounds for both commercial and household customers. Some of these products

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xercise 11-28 (Static) Sell-or-Process-Further Decision; Product Mix [LO 11-4, 11-7] antei Company produces cieaning compounds for both commercial and household customers. Some of these products are produced f part of a joint manufacturing peocess. For example, GR37, a course cleaning powder meant for commercial sale, costs $160 a pound moke and seis for 5200 per pound. A porton of the annual proctuction of GR37 is retained for further processing in a separate epartuent whele 4 is combined with several othes ingredients to form SiPol, which is sold as/a siver polish, ot $400 per unit. The. dditiona processing requires % pound of GR37 per unit additional processing costs amoun to $250 per unit of SitPol produced tariable seling costs for StPolaverage 5030 per unit. If production of StPol were discontinued, $5.600 of costs in the processing Separtment would be avoided Cantel has, at this point unlimaed demand for, but imsed capocity to produce, product GR37. iequired: Calcilate the minumum number of uniss of SiPol that would have to be sold in order to justly further processing of GR37 2. Assume than the cost data reported for GR37 are obtained at a level of outpit equal to 5,000 pounds, which is the maximum that the company can produce at this time. What is the expected operating income (oss) under each of the following scenarios: (a) all avaitable copaciy is vsed to produce CRa7, but no SePol, (to) 4,000 units of SaPol are produced, with the balance of capacity devoted to the production and sale of GR37, (c) 8.000 unts of Sifpel are peoduced, with the balance of capacity devoted to the prodiction and sale of Compilete this question tw entering your answers in the tabs below. (Pound foor an wer to near eat whole samber.) Complete this question by entering your answers in the tabs below. Assume that the cost data reported for GR37 are obtained at a level of output equal to 5,000 pounds, which is the maxaimum that the company can produce at this time. What is the expected operating income (loss) under each of the following scenarios: (a) all available capacity is used to produce GR37, but no Silpol: (b) 4,000 units of Sipol are produced, with the balance of capacity devoted to the production and sale of GR37; (c) 8,000 units of SAPol are produced, with the balance of capacity devoted to the production and sale of GR37; and (d) 10,000 units of Silpol are produced, with the balance of capacty devoted to the production and sale of GR37. (Loss amounts should be indicated with a minus sign.)

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