I am having a difficult time computing the correct number....

Indigo Industrial Products Inc. is a diversified 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, 891,000 ounces of chemical input are processed at a cost of $212,400 into 594,000 ounces of floor cleaner and 297,000 ounces of table cleaner. The floor cleaner 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 $241,800.

FloorShine sells at $21 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 297,000 ounces of another compound (TCP) to the 297,000 ounces of table cleaner. This joint process will yield 297,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $109,000. 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.

Table Cleaner:

Production in ounces: 297,000

Revenue: $237,600

Costs:

CDG costs: 70,800*

TCP costs: 0

Total Costs: 70,800

Weekly Gross Profit: $166,800

Table Stain Remover (TSR)

Product in ounces: 297,000

Revenues: $178,200

Costs:

CDG costs: 53,100

TCP costs: 54,500

Total Costs: 107,600

Weekly gross profit: $70,600

Table Polish

Production in ounces: 297,000

Revenues: $178,200

Costs:

CDG costs: 53,100

TCP costs: 54,500

Total costs: 107,600

Weekly gross profit: $70,600

Total

Revenues: $356,400

Costs:

CDG costs: 106,200**

TCP costs: 109,000

Total costs: 215,200

Weekly gross profit: $141,200

*If table cleaner is not processed further, it is allocated 1/3 of the $212,400 of CDG cost, which is equal total physical output.

**If table cleaner is processed further, total output is 1,188,000 ounces, TSR and TP combined of the total physical output 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:

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 e.g. -45 or parentheses e.g. (45).)

Incremental revenue:

Don´t process table cleaner further: $

Process Table Cleaner further: $

Net Income Increase (Decrease): $

Incremental costs:

Don´t process table cleaner further:

Process Table cleaner further:

Net income increase (decrease):

Totals:

Don´t process table cleaner further:

Process Table cleaner further:

Net income increases (decreases):