Question

Juarez Corporation produces cleaning compounds and solutions forindustrial and household use. While most of its products areprocessed independently, a few are related. Grit 337, a coarsecleaning powder with many industrial uses, costs $2.40 a pound tomake and sells for $3.60 a pound. A small portion of the annualproduction of this product is retained for further processing inthe Mixing Department, where it is combined with several otheringredients to form a paste, which is marketed as a silver polishselling for $5.20 per jar. This further processing requires 1/4pound of Grit 337 per jar. Costs of other ingredients, labor, andvariable overhead associated with this further processing amount to$2.40 per jar. Variable selling costs are $0.30 per jar. If thedecision were made to cease production of the silver polish, $8,800of Mixing Department fixed costs could be avoided. Juarez haslimited production capacity for Grit 337, but unlimited demand forthe cleaning powder. Required: Calculate the minimum number of jarsof silver polish that would have to be sold to justify furtherprocessing of Grit 337. (Round your intermediate calculations to 2decimal places and final answer to the nearest whole number.)