RNA-1 has no market value until it is converted into a pesticide with the trade name Fastkil. Processing RNA-1 into Fastkit costs $240.000. Fastkil wholesales at $50 per 100 kilograms. RNA-2 is sold as is for $80 per 100 kilograms. However, management has discovered that RNA-2 can be converted into two new products by adding 400 000 kilograms of the compound LST to the 400 000 kilograms of RNA-2. This joint process would yield 400 000 kilograms each of DMZ-3 and Pestrol, the two new products. The additional direct material and related processing costs of this joint process would be $120000 DMZ 1 and Pestrol would each be sold for $57.50 per 100 kilograms. The company's management has decided not to process RNA-2 further, based on the analysis presented in the following schedule. Production (kg) Revenue Process further RNA-2 400000 $320000 DMZ-3 Pestrol Total 400000 400000 $230000 $230.000 $460000 Costs VDB costs 82000* 61.500 61 500 123000 Additional direct materials (LST) and processing of RNA-2 0 Total costs $ 82000 Weekly gross profit $248000 60000 $121500 $108.500 60000 120000 $121500 $243000 STON 500 $217000 $82000 is one third of the $246000 cost of processing VDB When RNA-2 is not processed further, one-third of the final output is RNA-2 (400000 out of a total of 1200 000 kilograms) $123000 half of the $246 000 cost of processing VDB When RNA-2 is processed further, one-half of the final output consists of DMZ 3 and Pestr The final products then are 800000 kilograms of RNA 1 400 000 kilograms of DM2-3 and 400 000 kilograms of Pestral Required: Evaluate Talor Chemical Company's analysis and make any revisions that are necessary. Your critique and analysis should indicate the following: (a) whether management made the correct decision (b) gross savings or loss per week resulting from the decision not to process RNA 2 further, if different from management's analysis