Question 7 of 7 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, 846.000 ounces of chemical input are processed at a cost of $209,100 into 564,000 ounces of floor cleaner and 282.000 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 $258,100. FloorShine sells at $19 per 30-ounce bottle. The table cleaner can be sold for $19 per 25-ounce bottle. However the table deaner can be converted into two other products by adding 282,000 ounces of another compound (TCP) to the 282.000 ounces of tbie cleaner . This joint process will yield 282,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $110,000. Both table products can be sold for S15 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) Total Production in ounces 282,000 282.000 282.000 Revenues $214,320 $169.200 $169,200 $338,400 Costs: CDG costs 69.700 52.275 52.275 104550 - TCP costs O 55.000 55,000 110,000 Total costs 69,700 107,275 107 275 214,550 Weekly gross profit $144,620 $61,925 $61.925 $123,850 output "If table cleaner is not processed further, it is allocated 13 of the $209,100 of CDG cost, which is equal to 1/3 of the total physical **If table cleaner is processed further, total physical output is 1.128.000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CDG cost. Using Incremental analysis, determine if the table cleaner should be processed further. (Enter negative amounts using other a negative sign preceding the number e.g. -45 or parentheses 09. (45).) Don't Process Process Net Income Table Cleaner Table Cleaner Increase Further Further (Decrease) Incremental revenue Incremental costs Totals