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Thompson Industrial Products Inc. (TIPI) is a diversified Industrial-cleaner processing company. The company's Dargan plant produces two products: a tabla deaner and a floor cleaner

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Thompson Industrial Products Inc. (TIPI) is a diversified Industrial-cleaner processing company. The company's Dargan plant produces two products: a tabla deaner and a floor cleaner from 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 poor deaner and 282.000 ounces of table cleaner The floor deaner 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 $250.100. Floor Shine sells at s19 per 30 ounce bottle. The table cleaner can be sold for 519 per 25-Ounce bottle. However, the table cleaner can be converted into two other products by adding 202,000 Ounces of another compound (TCP) to the 282,000 ounces of table cleaner. This joint process will yield 202,000 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 $15 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 Remover Table () Polish (TP) 202.000 282,000 $169.200 $169,200 Table Cleaner 202.000 $214,320 Total $338.400 Production in ounced Revenues Costs: CDG copt TCP costs Totalco Weekly groue rot 69,700 52.275 55,000 0 52,275 104.550 35,000 110,000 107,275 214,850 561,925 $123.550 69.700 144,00 107,275 $61.935 Ir table cleaner is not processed further it is allocated 1/3 of the $209,100 of CDG cost, which is equal to 1/3 of the total physical output if table clanner is processed further, total physical output is 1.120.600 ounces TSR and combined account for 50% of the total physical output and are each allocated 25% of the CD cost Your answer is correct. 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. M Total Weekly gross profit 104320 $ (2) Calculate the company's total weekly gross profit assuming the table cleaner is processed further. Total weekly gross profit 118400 (3) Compare the resulting net incomes and comment on management's decision Management made the wrong decision by choosing to not process table cleaner further. (b) Using incremental analysis, determine if the table cleaner should be processed further. (Enter parentheses e.g. (45).) Don't Process Table Cleaner Further Process Table Cleaner Further Net Income Increase (Decrease) Incremental revenue $ $ Incremental costs Totals $ Table cleaner be processed further

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