Question
Thompson industrial products Inc is a diversified industrial cleaner processing company. A table leaner and floor cleaner from acommon set of chemical inputs (CDG. Each
Thompson industrial products Inc is a diversified industrial cleaner processing company. A table leaner and floor cleaner from acommon set of chemical inputs (CDG. Each week 900,000 ounces of chemical input areprocessed at a cost o $210,000 into 600,000 ounces of floor cleaner and 300,000 ounces of table cleaner. The additional processing costs for this conversion amount to $240,000. Floor shine sells at $20 per 30-ounce bott.e The table cleaner can be sold for $17 per 25-ounce bottle. Adding 300,000 ounces on another component TCP to the 300,000 ounces of table cleaner. This joint process will yield 300,000 ounces each of table stain remover and table products can be sold for $14 per 25-ounce bottle. A 1. Calculate the companys total weekly gross profit assuming the table cleaner is not processed further. 2. Calculate the company's total weekly gross profit assuming the table cleaner is processed further. 3. Compare the resulting net incomes andmanagements decision. 4. Using the incremental analysis determine if the table cleaner should be processed further
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