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Crane Industrial Products Inc, is a diversifed industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from

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Crane Industrial Products Inc, is a diversifed 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, B73,000 ounces of chemical input are processed at a cost of $207,300 into 582,000 ounces of floor cleaner and 291,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name Floor 5 hine. The additional processing costs for this conversion amount to $253,500. 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 291,000 ounces of another compound (TCP) to the 291,000 ounces of table cleaner, This foint process vill yield 291,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $102,000. Both table protucts 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 table cleaner is not procetsed further it is allocated 1/3 of the 5207,300 of CDG cost, which is equal to 1/3 of the total physical cutput. "if table cleaner is processed further, total physical output is 1,164 , O00 ounces. TSR and TP combined occount for 50 N of the total ptivical output and are each allocated 25s of the CDG cost. (a) 6. Your answer is partially correct: Determine if management made the carrect decision to not process the table cleaner further by doing the following (1) Calculate the compayes total weekly tross protht asseming the tahile cleayer is not procesued fur ther. Determine if management made the correct decision to not process the table cleaner further by daing the following (1) Caiculate the company's total weekly gross profit assuming the table cleaner is not arccessed 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 rewulting net incomes and comment on tnanagement's decivion. Management made the decision by choosing to not process tatile cleaner firther

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