Question 14 of 14 -75 Cullumber Industrial Products Inc. (TIP) is a diversified industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor deaner from a common set of chemical inputs (CDG). Each week, 895,500 ounces of chemical input are processed at a cost of $208,500 into 597,000 ounces of floor cleaner and 298,500 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 $260,000. Floor Shine sells at $19 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 298.500 ounces of another compound (TCP) to the 298,500 ounces of table cleaner. This joint process will yield 298,500 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $103.000. 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 Table Remover Table Cleaner (TSR) Polish (TP) Production in ounces 298,500 298,500 298,500 Revenues $250,740 $179,100 $179.100 $358,200 Costs: CDG costs 69.500 52.125 52.125 104,250 Total Question 14 of 14 -/5 CDG costs TCP costs Total costs Weekly gross profit 69,500 0 69,500 $181,240 52,125 51,500 103,625 $75,475 52,125 51,500 103,625 $75,475 104,250 103,000 207,250 $150,950 if table cleaner is not processed further, it is allocated 1/3 of the $208,500 of CDG cost, which is equal to 1/3 of the total physical output. **Iftable cleaner is processed further, total physical output is 1,194,000 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 Question 14 of 14 Total weekly gross profit (3) Compare the resulting net incomes and comment on management's decision Management made the decision by choosing to not process table cleaner further e Textbook and Media Using incremental analysis, determine if the table cleaner should be processed further (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses es (451) Don't Process Process Net Income Table Cleaner Table Cleaner Increase Further Further (Decrease) Incremental revenue Question 14 of 14 -15 e Textbook and Media Using incremental analysis, determine if the table cleaner should be processed further. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg. (451) Don't Process Table Cleaner Further Process Table Cleaner Further Net Income Increase (Decrease) Incremental revenue $ Incremental costs Totals $ Table cleaner be processed further