Problem $13-27($Algo$)$ Sell or Process Further Decisions $[$LO$13-7]$

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 $$2\mathrm{.}00$ a pound to make, and it has a selling price of $$2\mathrm{.}80$ 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 $$4\mathrm{.}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:

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