Course ACC 1010 51-01 2001 Kop p courses/35333/assignments/36911997module_sem_id-11817961 * Paned Question 5 View Policies Current Attempt in Progress Swifty Industrial Products Inc. (TIP) is a diversified industrial cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor deaner from a common set of chemical inputs (CDG). Each week, 936,000 ounces of chemical input are processed at a cost of $209,100 into 624,000 ounces of floor cleaner and 312.000 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 $249,100. Floor Shine sells at $21 per 30 ounce bottle. The table cleaner can be sold for $21 per 25 ounce bottle. However, the table cleaner can be converted into two other products by adding 312,000 ounces of another compound (TCP) to the 312,000 ounces of table deaner. This joint process will yield 312.000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $100,000. 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 following analysis. Process Further Table Stain Remover (TSR) Table Cleaner Table Polish (TP) Total 312.000 $187,200 $374,400 Production in ounces 312.000 312,000 $187,200 Revenues $262.080 Costs: CDG costs 69.700 52,275 50,000 TCP costs 52.275 104.550 50,000 100.000 102.275 204.550 $84,925 $169,850 Total costs 69,700 102.275 Weekly gross profit $192,380 $84,925 "If table cleaner is not processed further, it is allocated 1/3 of the $209.100 of CDG cost, which is equal to 1/3 of the total physical output. **Iftable cleaner is processed further, total physical output is 1.248,000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CDG SOST "If table cleaner is not processed further, it is allocated 1/3 of the $209,100 of CDG cost, which is equal to 1/3 of the total physical outpu **If table cleaner is processed further, total physical output is 1,248,000 ounces. TSR and TP combined account for 50% of the total phys 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. (Enter negative amounts using either a negative sig (45).) th Course: AC 100 101001X Op come sem pre + m/courses/35333/assignments/3691199/module_item -11017961 * Par 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. (Enter negative amounts using either a negative sin preceding the number (451) -45 or parentheses es Don't Process Table Cleaner Further Process Table Cleaner Net Income Increase (Decrease) Further Incremental revenue S Incremental costs Totals Table cleaner be processed further. e Textbook and Media Attempts:0 of 3 used Submit Answer Save for Later Send to Gradebook