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Sell or Process Further Come-Clean Corporation produces a varlety 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 coarse cleaning power with many Industrial uses. It costs $1.60a pound to make, and it has a selling price of $2.00 a pound. A small portion of the annual pr 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 $4.00 per jar, and right now, company is selling 9,000 jars of Sparkle silver polish. This further processing requires one-f pound of Grit 337 per jar of silver polish. The additional direct costs involved in the processing of jar of silver polish are: oduction of Grit 337 is retained ourth Other ingredients: Direct labor$1.48 Total direct cost $0.65 $2.13 Overhead costs associated with processing the silver polish are Variable manufacturing overhead costs Fixed manufacturing overhead cost (per month) 25% of direct labor cost $13,000 $1,400 Depreciation of mixing equipment The production supervisor has no duties other than to oversee production of the silver polish. The miking equipment is special-purpose equipment acquired specifically to produce the silver polish. Its resale value is negligible. Direct labor is a variable cost at Come-Clean Corporation. The company is wondering whether the further processing of Sparkle silver polish is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337as a cleaning powder. Do you agree with the sales manager? Assuming Sparkle sales remain at 9,000 jars, by how much does the further processing of Grit 337 into Sparkle silver polish increase or decrease net income

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