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two products: a table cleaner and a floor cleaner from a cammon set of chemical inputs (CDG). Each week, 991,000 ounces of chamical input ars
two products: a table cleaner and a floor cleaner from a cammon set of chemical inputs (CDG). Each week, 991,000 ounces of chamical input ars processed at a cost of $212,400 into 594,000 ounces of floor cleaner and 297,000 ounces of table claaner. The floor clanar has no marlat value until it is converted into a polish with tha tradenama FloorShine. The additional processing costs for this comversian amount to $241,900. FloorShine sells at $21 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 ather products by addinz 297,000 ounces of anothar compound (TCP) to the 297,000 ounces of table eleaner. This joint process will yizld 297,000 ounces each of table stain remover (TSR]) and tabla polish [TP]. The additional processinz costs for this process amount to $109,000. Bath table products can be sald for $15 per 25 -ounce bottle. The company decided not to process the table claaner into TSR and TP based on the followinz analysis. "If table cleaner is not processed further, it is allocated 1/3 of the $212,400 of CDQ coat, which is equal to 1/3 of the total physical autput *"If table claner is processed further, tatal physical output is 1,199,000 ounces. TSR and TP combined account for 5056 of the tatal physical output and are each allosated 25% of the CDG cost (a) - Your answer is partially correct. Determine if manazement made the carrect decision to not process the table cleaner further by doing the followinz (1) Calculate the company's total weskly gross profit assuming the tabla cleaner is not processed further. Total weskikly mross profit \& (2) Calculate the campany's total wakkly gross profit assuming the table cleaner is processed further. Total weskiky ress profit $ (3) Compare the resulting net incomes and comment on manazement's decision. Management made the decision by choosing to not process table cleaner further
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