Question
Please send me the answers with step by step instructions on the calculations. Thank you Problem: AyayaiIndustrial Products Inc. is a diversified industrial-cleaner processing company.
Please send me the answers with step by step instructions on the calculations.
Thank you
Problem:
AyayaiIndustrial 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,855,000ounces of chemical input are processed at a cost of $207,000into570,000ounces of floor cleaner and285,000ounces 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 $240,000.
FloorShine sells at $18per 30-ounce bottle. The table cleaner can be sold for $17per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding285,000ounces of another compound (TCP) to the285,000ounces of table cleaner. This joint process will yield285,000ounces 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 $14per 25-ounce bottle.
The company decided not to process the table cleaner into TSR and TP based on the following analysis.
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AyayaiIndustrial 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,855,000ounces of chemical input are processed at a cost of $207,000into570,000ounces of floor cleaner and285,000ounces 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 $240,000.
FloorShine sells at $18per 30-ounce bottle. The table cleaner can be sold for $17per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding285,000ounces of another compound (TCP) to the285,000ounces of table cleaner. This joint process will yield285,000ounces 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 $14per 25-ounce bottle.
The company decided not to process the table cleaner into TSR and TP based on the following analysis.
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