View Policies Show Attempt History Current Attempt in Progress Blossom 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, 855,000 ounces of chemical Input are processed at a cost of $207,000 into 570,000 ounces of floor cleaner and 285,000 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 $240,000, FloorShine sells at $18 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle: However the table cleaner can be converted into two other products by adding 285,000 ounces of another compound (TCP) to the 285,000 ounces of table cleaner. This joint process will yield 285.000 ourices each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $100,000. 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 Cleaner Table Stain Remover (TSR) 285,000 Table Polish (TP) Total 285.000 285,000 $193,800 $159.600 $159,600 $319,200 Production in ounces Revenues Costs: CDG costs TCP costs 69.000 51.750 51.750 0 50,000 50,000 103,500 100,000 203,500 Total costs 69,000 101.750 101.750 Weekly gross profit $124,800 $57,850 $57,850 $115.700 Weekly gross profit $124.800 $57,850 $57.850 $115,700 *If table cleaner is not processed further, it is allocated 1/3 of the $207,000 of CDG cost, which is equal to 1/3 of the total physical output **If table cleaner is processed further, total physical output is 1,140,000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CDG cost. Using incremental analysis, determine if the table cleaner should be processed further. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses e.g. (451) Don't Process Table Cleaner Further Process Table Cleaner Further Net Income Increase (Decrease) Incremental revenue $ $ Incremental costs Totals $ $ $ Table cleaner be processed further eTextbook and Media Save for Later Attempts:0 of 5 used Submit