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Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are processed independently, a few are related. Grit
Zytel Corporation produces cleaning compounds and solutions for industrial
and household use. While most of its products are processed independently,
a few are related. Grit a coarse cleaning powder with many industrial
uses, costs $ a pound to make and sells for $ a pound. A small
portion of the annual production of this product is retained for further
processing in the Mixing Department, where it is combined with several
other ingredients to form a paste, which is marketed as a silver polish selling
for $ per jar. This further processing requires pound of Grit per
jar. Costs of other ingredients, labor, and variable overhead associated with
this further processing amount to $ per jar. Variable selling costs are
$ per jar. If the decision were made to cease production of the silver
polish, $ of Mixing Department fixed costs could be avoided. Zytel has
limited production capacity for Grit but unlimited demand for the
cleaning powder.
Required:
Calculate the minimum number of jars of silver polish that would have to be
sold to justify further processing of Grit
Note: Round your intermediate calculations to decimal places and final
answer to the nearest whole number.
Minimum number of jars
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