Problem 7-3A Part Level Submission) (Video) Thompson Industrial Products Inc. (TIPI) 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, 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. FloorShine 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 cleaner. 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 Table (TSR) Polish (TP) 312,000 312,000 $187,200 $187,200 Total Table Cleaner 312,000 $262,080 Production in ounces Revenues $374,400 69,700 * Costs: CDG costs TCP costs Total costs Weekly gross profit 52,275 50,000 102,275 $84,925 52,275 50,000 102,275 $84,925 104,550 ** 100,000 204,550 $169,850 69,700 $ 192,380 *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. **If table 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 cost. Your answer is partially correct. Try again. 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 240680| (2) Calculate the company's total weekly gross profit assuming the table cleaner is processed further. Total weekly gross profit 190600 (3) Compare the resulting net incomes and comment on management's decision. wrong Management made the Jdecision by choosing to not process table cleaner further