Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products
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Question:
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 a coarse cleaning powder with many industrial uses, costs $ a pound to make and sells for $ 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 $ per jar. This further processing requires pound of Grit per jar. Costs of other ingredients, labor, and variable overhead associated with this further processing amount to $ per jar. Variable selling costs are $ per jar. If the decision were made to cease production of the silver polish, $ of Mixing Department fixed costs could be avoided. Zytel has limited production capacity for Grit 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
Note: Round your intermediate calculations to decimal places and final answer to the nearest whole number.
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