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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 337, a coarse cleaning powder with many industrial
uses, costs $2.80 a pound to make and sells for $4.00 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 $4.40 per jar. This further processing requires 14 pound of Grit 337 per
jar. Costs of other ingredients, labor, and variable overhead associated with
this further processing amount to $2.40 per jar. Variable selling costs are
$0.50 per jar. If the decision were made to cease production of the silver
polish, $9,300 of Mixing Department fixed costs could be avoided. Zytel has
limited production capacity for Grit 337, 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 337.
Note: Round your intermediate calculations to 2 decimal places and final
answer to the nearest whole number.
Minimum number of jars
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