Come-Clean Corporation produces a variety of cleaning compounds and solutions for both Industrial and household use. While most of its products are processed independently a few are related, such as the company's Grit 337 and its Sparkle silver polish Grit 337 is a course cleaning powder with many industrial uses. It costs $160 a pound to make, and it has a selling price of $6.40 a pound. A small portion of the annual production of Grit 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as Sparkde silver polish. The silver polish sells for $5.00 per jar. This further processing requires one fourth pound of Grit 337 per jar of silver polish. The additional direct variable costs involved in the processing of a jar of silver polish are other diants $ 0.60 bet labor Total directo Overhead costs associated with processing the silver polish are Varile manufacturing overhead coat 251 of direct labor cost Find ating overed cont per moth) Production supervisor $ 3.300 Depreciation of Requent $ 1.500 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 10,000 jars of polish per month. Its resale value is negligible and it does not wear out through use Advertising costs for the silver polish to $3,700 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 seling it as a cleaning powder (Round your intermediate calculations and final answer to 2 decimal places.) a. How manyjars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to produce and sell the polis (Round your intermediate calculations to 2 decimal places.) 4. If the company ses 7100 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 10,800 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) Lorement 2. incremental contribution margin Number of that must be so Financial antage avantage Francia vantage ostal per month Come Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently, a few are related, such as the company's Grit 337 and its Sparkle silver polish Grit 337 is a coarse cleaning powder with many industrial uses. It costs $160 a pound to make, and it has a selling price of $6,40 a pound. A small portion of the annual production of Grit 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as 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 silver polish. The additional direct variable costs involved in the processing of a jar of silver polish are: Other ingredients $ 0.60 Direet labor 1.48 Total direct cost 5 2.08 $ 3,300 $ 1,500 Overhead costs associated with processing the silver polish are: Variable manufacturing overhead cost 25 of direct labor cost Yixed manufacturing overhead coat (per month) Production supervisor Depreciation of mixing equipment 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 10,000 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 $3,700 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 avoldable fixed costs incurred to produce and sell the polish? (Round your intermediate calculations to 2 decimal places.) 4. If the company sells 7,100 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than seling is as a cleaning powder? (Enter any "disadvantages" as a negative value. Round your intermediate calculations to 2 decimal places.) Strated with processing the silver polish are: Variable manufacturing overhead coat 251 of direct labor cost Fixed manufacturing overhead cont (per month) Production supervisor $ 3,300 Depreciation of mixing equipment $ 1,500 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 10,000 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 $3,700 per month. Variable selling costs associated with the silver pollsh 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 7100 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 10,800 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.) 1. Incremental revenue 2. Incremental contribution margin 3. Number of jars that must be sold 4. Financial advantage (disadvantage) 5. Financial advantage (disadvantage) perjar per jar per month