Come-Clean Corporation produces a variety of cleaning compoundsand solutions for both industrial and household use. While most ofits products are processed independently, a few are related, suchas the company’s Grit 337 and its Sparkle silver polish. Grit 337is a coarse cleaning powder with many industrial uses. It costs$1.60 a pound to make, and it has a selling price of $7.00 a pound.A small portion of the annual production of Grit 337 is retained inthe factory for further processing. It is combined with severalother ingredients to form a paste that is marketed as Sparklesilver polish. The silver polish sells for $5.00 per jar. Thisfurther processing requires one-fourth pound of Grit 337 per jar ofsilver polish. The additional direct variable costs involved in theprocessing of a jar of silver polish are: Other ingredients $ 0.50Direct labor 1.36 Total direct cost $ 1.86 Overhead costsassociated with processing the silver polish are: Variablemanufacturing overhead cost 25 % of direct labor cost Fixedmanufacturing overhead cost (per month) Production supervisor $3,200 Depreciation of mixing equipment $ 1,500 The productionsupervisor has no duties other than to oversee production of thesilver polish. The mixing equipment is special-purpose equipmentacquired specifically to produce the silver polish. It can produceup to 4,500 jars of polish per month. Its resale value isnegligible and it does not wear out through use. Advertising costsfor the silver polish total $4,800 per month. Variable sellingcosts associated with the silver polish are 5% of sales. Due to arecent decline in the demand for silver polish, the company iswondering whether its continued production is advisable. The salesmanager feels that it would be more profitable to sell all of theGrit 337 as a cleaning powder. Required: 1. How much incrementalrevenue does the company earn per jar of polish by furtherprocessing Grit 337 rather than selling it as a cleaning powder?(Round your answer to 2 decimal places.) 2. How much incrementalcontribution margin does the company earn per jar of polish byfurther processing Grit 337 rather than selling it as a cleaningpowder? (Round your intermediate calculations and final answer to 2decimal places.) 3. How many jars of silver polish must be soldeach month to exactly offset the avoidable fixed costs incurred toproduce and sell the polish? (Round your intermediate calculationsto 2 decimal places.) 4. If the company sells 7,500 jars of polish,what is the financial advantage (disadvantage) of choosing tofurther process Grit 337 rather than selling is as a cleaningpowder? (Enter any "disadvantages" as a negative value. Round yourintermediate calculations to 2 decimal places.) 5. If the companysells 10,400 jars of polish, what is the financial advantage(disadvantage) of choosing to further process Grit 337 rather thanselling is as a cleaning powder? (Enter any "disadvantages" as anegative value. Round your intermediate calculations to 2 decimalplaces.)