help me solve p7.3 partA (detailed please)
De 17.3 ILO4), AN Thompson Industrial Products (TIP) is a diversified industrial cleaner processing com pany. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG) Fach weck, 900,000 liters of chemical input are processed at a $2.500 cost of 210,000 into 600.000 liters of floor cleaner and 300,000 liters 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 240,000 Floor Shine sells at 20 per 30 liter bootle. The table cleaner can be sold for 17 per 25-liter bottle However, the table cleaner can be converted into two other products by adding 300.000 liters of another compound (TCP) to the 300.000 liters of table cleaner. This joint process will yield 300,000 liters each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount 10 100,000. Both table products can be sold for 14 per 25-liter bottle The company decided not to process the table cleanet into TSR and TP based on the following analysis Process Further Table Stain Table Remover Table Polish Cleaner (TSR) (TP) Total Production in liters 300,000 300,000 300,000 Revenues 204.000 165,000 168.000 336.000 Costs CDG costs 70,000 52,500 105.000 TCP costs 0 50,000 50.000 100,000 Total costs 20,000 102.500 102.500 205.000 Weekly Bross profit 134.000 E 65.500 65.500 131.000 "lable clan is to proceed further, it allocated 15 of the 10,000 o CD col, which is equal to 1/3 of the total physical output Itable cleaners processed further total physical potis 1,200,000 TSR s TP comhd account for 50% of the total physical output and reach located 25% of the CDG com Instructions a. 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 grous profit assuming the table cleaner is not processed further 2. Calculate the company's total weekly prou profit assuming the table cleaner is processed further 3. Compare the resulting not incomes and comment on management's decision b. Using incremental analysis, determine if the table cleaner should be processed further Ethics Case CT7.5 Bima Yuksen became Chief Executive Officer of Pahlawan Enterprises two years ago. At the time, the company was reporting lagging profits, and Bima was brought in to stir things up." The company has three divisions, electronics, fiber optics, and plumbing supplies, Bima has no interest in plumbing supplies, and one of the first things he did was to put pressure on his accountants to reallo cate some of the company's fixed costs away from the other two divisions to the plumbing division This had the effect of causing the plumbing division to report losses during the last two years in the past it had always reported low, but acceptable, net income. Bima felt that this reallocation would shine a favorable light on him in front of the board of directors because it meant that the electronics and fiber optics divisions would look like they were improving. Given that these are businesses of the future," he believed that the equities market would act favorably to these increases, while not penalizing the poor results of the plumbing division. Without this shift in the allocation of fixed costs, the profits of the electronics and fiber optics divisions would not have improved. But now the board of directors has suggested that the plumbing division be closed because it is reporting losses. This would mean that nearly 500 employees, many of whom have worked for Pahlawan their whole lives, would lose their jobs Instructions a. If a division is reporting losses, does that necessarily mean that it should be closed? b. Was the reallocation
