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CES NEXT Pronghorn Industrial Products Inc. is a diversified Industrial cleaner processing company. The company's Dargan plant produces two products: a table cener and a

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CES NEXT Pronghorn Industrial Products Inc. is a diversified Industrial cleaner processing company. The company's Dargan plant produces two products: a table cener and a floor cener from a common of chemical Inputs (CDG). Each week, 855,000 ounces of chemical Input are processed at a cost of $207,000 into 570,000 ounces of Moor cleaner and 285.000 ounces of table deaner. The floor deaner has no market value until it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $258,700 FloorShine sells at 521 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 unces of another compound (TCP) to the 285,000 ounces of table cleaner. This joint process will yield 285,000 on each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $104,000. Both table products can be sold for sis per 25-ounce bottle The company decided not to process the table deaner into TSR and TP based on the following analysis. Table Process Further Table Stain Remover Table (TSR) Polish (TP) 285.000 $171,000 Production in ounces 285.000 $342.000 69,000 51,750 CDG costs TC costs Total costs $1,750 52.000 103,750 $67,250 103,500 - 104,000 207,500 $134,500 103,750 Weekly gross profit If table cleaner is not processed further is located 1/3 of the $207,000 of CDG cost, which is equal to 1/3 of the total physical output **if table cleaner is processed further, total physical output is 1,140,000 ounces. TSR and TP combined account for 50 of the total physical output and are each located 25% of the COG COM Determine if management made the correct decision to not process the table cleaner further by doing the following (i) Calculate the company's total weekly gross profit assuming the table degner is not processed further Total weekly gross profit (2) Calculate the company's total weekly gross prontassuming the table deaner i processed further Total wey gross profit (3) Compare the resulting net incomes and comment on management's decision decision by choosing to not process table cleaner further Using incremental analysis, determine the table cleaner should be processed further. (If amount decreases net income then enter the amount using either a 'negative si number aug.-45 or parenthesese.. (45) sreceding the Net Income Increase Table Cleaner Further Table Cleaner Further Incremental revenue Incremental costs o lky set by your instructor By accessing this Question Assistance, you will learn while you earn points based on the point t Question Attempts to used BUMIY

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