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The Sutton Industrial Products Inc. (SIPD) is a diversified industrial-cleaner processing company. company's Verde plant produces two products: a table cleaner and a floor cleaner

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The Sutton Industrial Products Inc. (SIPD) is a diversified industrial-cleaner processing company. company's Verde plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week 859,950 ounces of chemical input are processed at a cost of $207,600 into 573,300 ounces of floor cleaner and 286,650 ounces o 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 $258,820. f table FloorShine sells at $18 per 30-ounce bottle. The table cleaner can be sold for $26 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 286,650 ounces of another compound (TCP) to the 286,650 ounces of table cleaner. This joint process will yield 286,650 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $107,700. Both table products can be sold for $22 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 Table Remover Cleaner (TSR) Polish (TP) Total Production in ounces 286,650 286,650 Revenue 286,650 $298,116 $252252 $252.252 S504,504 Costs: 51,900 53,850 105,750 $146,502 51,900 103,800* 53,850 107,700 105,750 211,500 69,200" CDG costs TCP costs 0 Total costs 69,200 $146,502 $293.004 $228,916 $ Weekly gross profit eIf table cleaner is not processed further, it is allocated 1/8 of the $207,600 of CDG cost, which is equal to 1/3 of the total physical output. If table cleaner is processed further, total physical output is 1,146,600 combined account for 50% of the total physical output and are each allocated 25% of the CDG ounces. TSR and TP cost. Determine if management made the correct decision to not the following. process the table cleaner further by doing (1) Calculate the company's total weekly gross profit assuming the table further table cleaner is processed (2) Calculate the company's total weekly gross profit assuming the ta further (3) Compare the resulting net incomes (4) Using incremental analysis, determine if the table cleaner should and comment on management's decision

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