Thompson Industrial Products Inc. {Tl PI] is a diversied indu strial-cleaner processing company. The companst Dargan plant produces two products: a table cleaner and a 'Floor cleaner from a common set of chemical inputs {CDG}, Each week, 913,500 ounces of chemical input are processed at a cost of $210,600 into 609,000 ounces of oor cleaner and 304,500 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 $253,200. Floo rShine sells at $22 per 30-ounce bottle. The table cleaner can be sold for $20 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 304,500 ounces of another compound [TCP] to the 304,5 00 ounces of table cleaner. This joint process will yield 304,500 ounces each of table stain remover lTSR} and table polish {TP}. The additional processing costs for this process amount to $104,000. Both table products can be sold for $15 per 25ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis. Process Further Table Stain Table Remover Table Cleaner [TSRJ Polish lTPl Total Production in ounces 304,500 304,500 304,500 Revenues $243,600 $ 132,200 $182,700 $365,400 Costs: CDG costs 20,200 5 52,650 52,650 105,300 '\" TCP costs 0 52,000 52,000 104,000 Total costs ?0,200 104,650 104,650 209,300 Wee klv gross prot $123,400 $13,050 $703,050 $156,100 "lf table cleaner is not processed further, it is allocated 1.43 of the $210,600 of C06 cost, which is equal to 1;\"3 of the total physical output. \"it table cleaner is processed further1 total physical output is 1,218,000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CD0 cost.