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Question 1 Thong Industrial Products (TIP) diversified industrial cleaner processing company. The company's Dargan plant produces the product at cleaner and a floor comer from a comment of chemical inputs (CDG). Fach week, 55.000 of chemical input are processed at a cost of $207,200 to $70,000 ounces of floor cleaner and 385,000 cances of the cleaner The floor cleaner has to market value until it is converted into a polish with the trade name Floors. The additional processing costs for this convence $257.800 Floor Shine sells 20 per 30-ounce bomle. The table cleaner can be sold for S19 per 25nce but How the table cleaner can be converted into two other products by adding 285,000 ounces of another compound (TCP) the 285.000 ounces of table cleanet. This joints will yeld 25.000 de each of table stain remover (TSR) and table polish (TI). The additional processing costs for this process amount to $103.000. Both table products.com be sold for $5 per 25-ounce bottle The company decided not to proces de table cenerimo TSR and TP based on the following analysis Process Further Table Stain Table Table Remover Polish Cleaner (TSR) (TP) Total Production 285.000 25.00 in ounces 25.000 Revenues $216,600 5171,000 $171.000 42.00 Costs CDG 6.9.20051.900 51.900 105.00 CS 0 costs 51.500 $1.500 185.000 Total 9.300 103.400 103.000.00 costs Weekly gross $147.400 $67.00 67.00 $0.00 profit TCP *trtable cleaner i et processed further acted 13 of the $207,600 of CDG cost, which is equal to 1/3 of the total physical output **If table cleaner is processed further, talpical output 11.140,006 ounces. TSR and TP combined account for 50% of the total physical output and are cach allocated 25% of the CDG cost (a) Determine if management made the cont decision to de process the table cleaner further by doing the following (1) Calculate the company's total weekly gross profie assuming the table cleaner is not processed further Total weekly grows profils (2) Calculate the company total wedky pro pri assuming the table cleaner is processed further Total weekly gross profits (3) Compare the resulting sets and mento management's decision Management made the rightwrong decisice by choosing to not process tecleant further

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