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Concord Industrial Products Inc. is a diversified industrial-cleaner processing company. The company's Dergan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week 900.000 ounces of chemical input are processed at a cost of $210.300 into 606,000 ounces of floor cleaner and 303,000 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 $255.500 FloorShine sells at $22 per 30-ounce bottle. The table cleaner can be sold for $20 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 303,000 ounces of another compound (TCP to the 308.000 oundes of table cleaner. This joint process will yield 303,000 ounces each of table stain remover (TSR) and table polish (TP The additional processing costs for this process amount to $107.000. Both table products 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 followine analysis. Process Further Table Stain Remover (TSR) 303,000 $181,800 Table Cleaner 303,000 $242.400 Total Table Polish (TP) 303,000 S181,800 $ $363.600 Production in ounces Revenues Costs CDG costs TCP costs Total costs Weekly gross profit 70.100 0 52.575 53.500 106,075 $75.725 52.575 53.500 106.075 $75.725 105.150 107.000 212.150 $151 450 70.100 $172.300 "Itable cleaner is not processed further it is allocated 13 of the $210.000 of CDG cost, which is equal to 1/3 of the total physical output table cleaner is processed further, total physical output is 1.212,000 ounces. TSR and TP combined account for 509s of the total physical output and are each allocated 2596 of the CDG cost. 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 S 21 Calculate the company's total weekly gross profit assuming the table cleaner is processed further Total weekly gross profit $ (3) Compare the resulting net incomes and comment on management's decision Management made the decision by choosing to not process table cleaner further eTextbook and Media ype here to search LOS 70.100 0 CDG costs TCP costs Total costs Weekly gross profit 52.575 53,500 106,075 $75.725 52.575 53,500 106,075 $75.725 105.150 107.000 212.150 $151.450 70.100 $172,300 "If table cleaner is not processed further it is allocated 1/3 of the $210,300 of CDG cost, which is equal to 1/3 of the total physical output **Iftable deaner is processed further, total physical output is 1.212.000 ounces TSR and to combined a dount for 50% of the total physical output and are each allocated 25% of the CDG cost. 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 (3) Compare the resulting net incomes and comment on management's decision Management made the decision by choosing to not process table cleaner further e Textbook and Media Using incremental analysis, determine if the table cleaner should be processed further. If amount decreases net income then enter the amount using either a negative sign preceding the number eg 45 or parentheses es (45) Don't Process Table Cleaner Further Process Table Cleaner Further Net Income Increase (Decrease) incremental s S $ incremental costs $ $ eTextbook and Media Attempts: 0 of 3 used Submit Answer pe here to search O a