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THIS IS THE 4th TIME I AM POSTING THE SAME QUESTION. KINDLY ANSWER ONLY IF YOU ARE 100% SURE ABOUT THE ANSWER!!! PLEASE ANSWER PART
THIS IS THE 4th TIME I AM POSTING THE SAME QUESTION. KINDLY ANSWER ONLY IF YOU ARE 100% SURE ABOUT THE ANSWER!!!
PLEASE ANSWER PART B
Sutton Industrial Products Inc. (SIPI) is a diversified industrial-cleaner processing company. The company's Verde plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week 888,300 ounces of chemical input are processed at a cost of $209,100 into 592,200 ounces of floor cleaner and 296,100 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 $245,988. FloorShine sells at $22 per 30-ounce bottle. The table cleaner can be sold for $25 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 296,100 ounces of another compound (TCP) to the 296,100 ounces of table cleaner. This joint process will yield 296,100 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $108,900. Both table products can be sold for $21 per 25-ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis. Determine if management made the correct decision to not process the table cleaner further by doing the following. Calculate the company's total weekly gross profit assuming the table cleaner is not processed further. Compare the resulting net incomes and comment on management's decision. Determine if management made the correct decision to not process the table cleaner further by doing the following. Calculate the company's total weekly gross profit assuming the table cleaner is not processed further. Calculate the company's total weekly gross profit assuming the table cleaner is processed further. Compare the resulting net incomes and comment on management's decision. Using incremental analysis, determine if the table cleaner should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Step by Step Solution
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