1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeyben [28]
2 years ago
12

Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are pro

cessed independently, a few are related. Grit 337, a coarse cleaning powder with many industrial uses, costs $2.20 a pound to make and sells for $3.40 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 $5.60 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 $2.40 per jar. Variable selling costs are $0.40 per jar. If the decision were made to cease production of the silver polish, $8,800 of Mixing Department fixed costs could be avoided. Zytel has limited production capacity for Grit 337, but unlimited demand for the cleaning powder.
Required:1. 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.)
Business
1 answer:
SCORPION-xisa [38]2 years ago
8 0

Answer:

4,513 approx.

Explanation:

The computation of the minimum number of jars of silver polish is shown below:-

Sales revenue for one jar of silver polish    $5.60

Sales revenue for 1/4 pound of Grit 337     0.85

($3.40 ×  1 ÷ 4)

Incremental revenue from

further processing                                        $4.75

($5.60 - 0.85)

Incremental costs of further processing:

Processing costs                      $2.40

Selling costs                              $0.40          $2.80

Incremental contribution

margin from further

processing into silver polish

per jar                                                            $1.95

($4.75 - $2.80)

Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.

Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution

= $8,800 ÷ $1.95

= 4,513 approx.

You might be interested in
How are passwords stored on your personal computer?
enyata [817]
Passwords are stored on the computer with a encrypted format.

Encryption is the translation of data into a secret code. Encryption is the most effective was to achieve data security, which this protects and stores your passwords.

Hope this helps! :D
5 0
3 years ago
During which phase must project teams address important considerations for managing information (and often end up updating busin
beks73 [17]

Answer:

execution

Explanation:

The phase in which project teams address important considerations for managing information (and often end up updating business processes through improved communications) is execution phase.

Execution phase has a very long process in project management, in this phase information has to be managed,it is in this phase of management that the product and services that the organization render is been delivered to the customers. And most importantly, communication has to been improved between the company and their clients.

6 0
3 years ago
Jane Westerlund owns a picture-framing store, The Caplow Co. The average price she receives for a framed picture is $120. This p
Olegator [25]

Answer:

this would cause total costs to Increase and the break-even quantity to Increase.

Explanation:

Total Cost is the Sum of All Manufacturing and Non-Manufacturing  Cost of a product.

Advertising expense before adjustments are at $500. The cost of advertising does not vary with the sales quantities therefore this is a fixed cost.

Therefore an Increase in the advertising expense causes an increase in Total cost figure.

Break even quantity is a function of Fixed Costs divided by Contribution per unit.The break even quantity will definitely change. By increasing the fixed costs (<em>Advertising Expense</em>), the Break even quantity will increase.

5 0
3 years ago
Read 2 more answers
With a framework in place, controls and risk become more measurable. The ability to measure the enterprise against a set of stan
weeeeeb [17]

Answer:

True

Explanation:

When a company as a framework to measure risk against, it can properly assess risk in different periods of time, depending of the risk score obtained within the framework.

This helps regulators because they can access an accurate primary information from the company itself (later on, they should probably compare that information against their own standards in order to prevent bias), and it also helps the company because it can see where it stands in terms of risk, which reduces uncertainty.

7 0
3 years ago
Americans are beginning to rely more on _________ as their source for news. ap gov
Lerok [7]
<span>Americans, primarily younger Americans, are beginning to rely on the internet for their main source of news. The internet reaches far and wide across the world an offers a wide array of sources and can even be personalized to suit each persons wants and interests.</span>
4 0
3 years ago
Other questions:
  • Leonardo, who is married but files separately, earns $90,000 of taxable income. He also has $8,750 in city of Tulsa bonds. His w
    6·1 answer
  • Lavallee Self Storage purchased​ land, paying $ 160 comma 000 cash as a down payment and signing a $ 145 comma 000 note payable
    13·1 answer
  • What does an exchange rate tell you?
    15·2 answers
  • What is a market segment?
    12·2 answers
  • The repair shop owner feels that he is losing many customers needing routine repair because of the long wait. He dedicates one h
    6·1 answer
  • The unit price of a product is $20. A manufacturer who needs this product has an inventory carrying cost of 30% of unit value pe
    7·1 answer
  • What does it mean to "diversity" your portfolio?<br> NGPF
    11·1 answer
  • Which of the following statements would come from someone classified as unemployed? Question 25 options: I can't stand my curren
    13·1 answer
  • Si se tiene un activo de Q50,000.00 menos un patrimonio de
    13·1 answer
  • The failure to record which transaction has no effect on the quality of inventory?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!