Respuesta :
The least amount of silver polish which could be sold to cover the cost of processing grit 337 is 8,000 jars.
What does the phrase sold mean?
When something is sold, money is given in return for it. So when house all across street is purchased by neighbours, a "Sold" sign will emerge in its front yard.
Briefing:
Each container of silver polish brought in $4.00 in sales.
($2.00 x 4) in missed sales for one-fourth of a kilo of Grit 337 (0.50).
$3.50 is the net sales income per jar containing silver polish.
Less: Cost of variable processing is $2.50.
Cost of selling variables is 0.30 (2.80)
$0.70 in contribution margin.
Break-even level 8,000 jars are equal to $5,600 divided by $0.70 each jar.
8,000 jars mark the point of indifference. If sales of the silver polish exceed 8,000 jars, Zytel should continue turning powdered Grit 337 into silver polish. Zytel should stop producing the silver polish if sales of less below 8,000 jars are possible.
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