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Business, 06.10.2019 05:00 nevelle

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 $2.30 a pound to make and sells for $3.50 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 $6.10 per jar. this further processing requires 1/4 pound of grit 337 per jar. costs of other ingredients, labor, and variable overhead associated with this further processing amount to $2.30 per jar. variable selling costs are $0.60 per jar. if the decision were made to cease production of the silver polish, $9,000 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. (round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.)

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Zytel corporation produces cleaning compounds and solutions for industrial and household use. while...

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