Problem 12-3 Culver Industrial Products Inc. is a diversified industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 927,000 Ounces of chemical input are processed at a cost of $212,100 into 618,000 ounces of floor cleaner and 309,000 ounces of table cleaner. The floor cleaner 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 $245,000 Floor Shine sells at $18 per 30-ounce bottle. The table cleaner can be sold for $18 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 309,000 ounces of another compound (TCP) to the 309,000 ounces of table cleaner. This joint process will yield 309,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $109,000. Both table products can be sold for $14 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 Remover Table Cleaner (TSR) Polish (TP) Total Production in ounces 309,000 309,000 309,000 Revenues $222,480 $173,040 $173,040 5346,080 Costs CDG costs 70,700 53,025 53,025 106,050 TCP costs 54,500 54,500 109,000 Total costs 70,700 107,525 107,525 215,050 Weekly gross profit $151,780 365.515 $65,515 5131,030 0 * Ir table cleaner is not processed further, it is allocated 1/3 of the $212,100 of CDG cost, which is equal to 1/3 of the total physical output **If table cleaner is processed further, total physical output is 1,236,000 ounces. TSR and TP combined account for 50 of the total physical output and are each allocated 25% of the CDG cost. Determine if management made the correct decision to not process the table cleaner further by doing the following