Question 1 Sutton Industrial Products Inc. (SIPI) is a diversified industrial-cleaner processing company. The company's Verde plant produces two products: a table deaner and a floor cleaner from a common set of chemical inputs (CDG). Each week 870,750 ounces of chemical input are processed at a cost of $212,400 into 580,500 ounces of floor cleaner and 290,250 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 $256,005 FloorShine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $28 per 25-ounce bottle. However the table cleaner can be converted into two other products by adding 290,250 ounces of another compound (TCP) to the 290,250 ounces of table cleaner. This joint process will yield 290,250 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $101,800. Both table products can be sold for $22 per 25-ounce bottle. The company decided not to process the table deaner into TSR and TP based on the following analysis. Process Further Table Stain Remover Table Cleaner 290,250 $325,080 Table (TSR)Polish (TP) Total Production in ounces Revenue Costs: 290,250 $255,420 290,250 $255,420 $510,840 CDG costs TCP costs 53,100 50,900 70,800 53,100106,200 50,900 101,800 104,000 208,000 $151,420 $302,840 0 Total costs 70,800 $254,280 Weekly gross profit $151,420 If table cleaner is not processed further, it is allocated 1/3 of the $212,400 of CDG cost, which is equal to 1/3 of the total physical output. -"If table cleaner is processed further, total physical output is 1,161.000 ounces. TSR and TP combined account for 50% of the total physical output and 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 (3) Compare the resulting net incomes and comment on management's dedsion. Management made the decision by choosing to not process table cdeaner further