Show me the steps to solve Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced

as part of a joint manufacturIng process. For example, GR$37,$ a coarse cleanIng powder meant for commerclal sale, costs $$2\mathrm{.}30$ a

pound to make and sells for $$2\mathrm{.}40$ per pound. A portion of the annual production of GR$37$ is retained for further processing in a

separate department where it is combined with several other Ingredients to form SIIPol, which is sold as a silver polish, at $$4\mathrm{.}00$ per

unit. The additional processing requires $\frac{1}{4}$ pound of GR$37$ per unit; additional processing costs amount to $$2\mathrm{.}90$ per unit of SIIPol

produced. Varlable selling costs for SIIPol average $$0\mathrm{.}10$ per unit. If production of SIIPol were discontinued, $$5,000$ of costs in the

processing department would be avolded. Cantel has, at this point, unlimited demand for, but limited capacity to produce, product

GR$37.$

Requlred:

Calculate the minimum number of units of SIIPol that would have to be sold in order to Justify further processing of GR$37.$

Assume that the cost data reported for GR$37$ are obtained at a level of output equal to $5,400$ pounds, which is the maximum that the

company can produce at this time. What is the expected operating income $($loss$)$ under each of the following scenarlos: $($a$)$ all avallable

capacity is used to produce GR$37,$ but no SIIPol; $($b$)10,500$ units of SIIPol are produced, with the balance of capacity devoted to the

production and sale of GR$37$; $($c$)12,500$ units of SIIPol are produced, with the balance of capacity devoted to the production and sale

of GR$37$; and $($d$)14,500$ units of SIIPol are produced, with the balance of capacity devoted to the production and sale of GR$37.$

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Required $2$

Assume that the cost data reported for GR$37$ are obtained at a level of output equal to $5,400$ pounds, which is the

maximum that the company can produce at this time. What is the expected operating income $($loss$)$ under each of

the following scenarios: $($a$)$ all available capacity is used to produce GR$37,$ but no SilPol; $($b$)10,500$ units of SilPol are

produced, with the balance of capacity devoted to the production and sale of GR$37$; $($c$)12,500$ units of SilPol are

produced, with the balance of capacity devoted to the production and sale of GR$37$; and $($d$)14,500$ units of Silpol are

produced, with the balance of capacity devoted to the production and sale of GR$37.($Loss amounts should be

indicated with a minus sign.$)$