Question: Determine if management made the correct decision to not process the table cleaner further by doing the following (1) Calculate the company's total weekly gross

 Determine if management made the correct decision to not process the
table cleaner further by doing the following (1) Calculate the company's total
weekly gross profit assuming the table cleaner is not processed further Total

Determine if management made the correct decision to not process the table cleaner further by doing the following (1) Calculate the company's total weekly gross profit assuming the table cleaner is not processed further Total weekly gross profit $ (2) Calculate the company's total weekly gross profit assuming the table cleaner is processed further: Total weekly gross profit 5 (3) Compare the resultingnet incomes and comment on management's decision. Manazement made the decision by choosing to not process table cleaner further eTextbookand Media Solution Thompson Industrial Products Inc (TIPI) is a diversified industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 855,000 ounces of chemical input are processed at a cost of $207,600 into 570,000 ounces of floor cleaner and 285,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name Floor Shine. The additional processing costs for this conversion amount to $257,800 FloorShine sells at $20 per 30 -ounce bottle. The table cleaner can be sold for $19 per 25 -ounce bottle. However, the table cleaner can be converted into two other products by adding 285,000 ounces of another compound (TCP) to the 285,000 ounces of table cleaner. This joint process will yield 285,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $103,000. Both tableproducts can be sold for $15 per 25 -ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis. -If tablecleaner is not processed furtheri it is allocated 1/3 of the $207,600 of CDG cest, which is equal to 1/3 of the total physical output. * If table cleaner's processed furtheri total physical output is 1,140,000 ounces. TSR and TP combined account for 5096 of the total physical output and are each allocated 25% of the CDG cost. Using incremental analysis, determine if the table cleaner should be processed further. (Enter negative amounts using elthera negative sign preceding the number es. 45 or parentheses eg. (45).) Tablecleaner be processed further

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!