sutton industrial is a diversified industrial cleaner processing co they produce 2 p 580110

Sutton Industrial is a diversified industrial cleaner processing Co. they produce 2 products: table cleaner and floor cleaner.? Add update Delete Question (TC) (TSR) TP Total

Production in oz 300,000 300000 300,000

Revenue 216,000 168,000 168k 336k

CDG Costs 70,000 52,500 52.5K 105k

TCP Costs 0 50,000 50k 100k

Total Costs 70,000 102,500 102.5k 205k

Weekly G.Profit 146,000 65,500 65.5k 131k

calculate the Co. Weekly gross profit assuming the TC is not processed.

calculate the Co. total weekly GP assuming the TC is processed further. compare and comment on mangers decision

using incremental analysis, determine if the TC should be processed further.”>Ea. week 900,000oz of chemical input r processed @ a cost of $210,000 into 600,000oz of floor cleaner and 300,000 oz of TC. FC has no market value until it is converted into a polish w/ the trade name FloorShine. The additional processing costs for this conversion amt to $240,000. FloorShine sells at $20 per 30 oz bottle. TC can be sold for $18per 25 oz bottle. TC can be converted into 2 other products by adding 300,000oz of another compound (TCP) to the 300,000oz of table cleaner. This joint process will yield 300,000oz ea of table stain remover (TSR) & table polish (TP). 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 TC into TSR and TP based on the following.

(TC) (TSR) TP Total

Production in oz 300,000 300000 300,000

Revenue 216,000 168,000 168k 336k

CDG Costs 70,000 52,500 52.5K 105k

TCP Costs 0 50,000 50k 100k

Total Costs 70,000 102,500 102.5k 205k

Weekly G.Profit 146,000 65,500 65.5k 131k

calculate the Co. Weekly gross profit assuming the TC is not processed.

calculate the Co. total weekly GP assuming the TC is processed further. compare and comment on mangers decision

using incremental analysis, determine if the TC should be processed further.