Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The company decided not to process the table cleaner into TSR and TP based on the following analysis. Table Cleaner 298,500 Process Further Table Stain
The company decided not to process the table cleaner into TSR and TP based on the following analysis. Table Cleaner 298,500 Process Further Table Stain Remover Table (TSR) Polish (TP) 298,500 298,500 $179,100 $179,100 Total Production in ounces $250,740 $358,200 69,500 * Revenues Costs CDG costs TCP costs Total costs Weekly gross profit 52,125 51,500 103,625 $75,475 52,125 51,500 103,625 $75,475 104,250 ** 103,000 207,250 $150,950 69,500 $181,240 *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. **If table 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. 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 160,340 (2) Calculate the company's total weekly gross profit assuming the table cleaner is processed further. IX Total weekly gross profit 107,460 (3) Compare the resulting net incomes and comment on management's decision
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started