Polymtech uses advanced laser technology to manufacture polymers for a variety of applications. One of their processes produces four separate polymers (N200, HV87, HMT45, and V989) in one batch containing 1,000 grams of final product. The proportion of each polymer produced in the batch is fixed by the chemistry of the process and cannot be altered. Each of the four polymers produced in the batch can either be sold as is or further processed and sold at a higher price. Each batch producing the four polymers costs $2090.00 per batch before further processing any of the four polymers. The following table summarizes the output per batch, the selling price per gram with and without further processing, and the cost of further processing.

Required:
a. Which of the four polymers should be processed further and then sold, and which polymers should be sold immediately without further processing?
b. Should Polymtech be producing batches of these four polymers?
c. What is the maximum cost per batch (excluding any further processing costs) that Polymtech is willing to incur before Polymtech stops producing batches of these four polymers? Assume that all selling prices and further processing costs do not change.
d. To analyze the relative profitability of the four polymers, allocate the batch production cost of $2,090 to each of the four polymers using the number of grams of each polymer produced in the batch as the allocation base. Which polymer is the most and which polymer is the least profitable after allocating the $2,090 batch cost?
e. Based on your analysis in part (d), recommend actions that management can take to improve the profitability of producing batches of these four polymers?

Products Total grams per batch Sales price/gram without further processing Cost/gram of further processing Sales price/gram with further processing HMT45 HV87 300 N200 W989 200 150 350 $1.89 $0.73 $0.76 $3.30 $0.82 $2.93 $0.37 $4.10 $3.65 $3.44 $2.17