P7-3A Determine if product should be sold or processed...

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P7-3A Determine if product should be sold or processed further. Thompson Industrial Products Inc. (TIPI) is a diversified industrial-cleaner processing co produces two products: a table cleaner and a floor cleaner from a common set of chemi ounces of chemical input are processed at a cost of $210,000 into 600,000 ounces of flo cleaner. The floor cleaner has no market value until it is converted into a polish with the processing costs for this conversion amount to $240,000. FloorShine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $17 p cleaner can be converted into two other products by adding 300,000 ounces of another of table cleaner. This joint process will yield 300,000 ounces each of table stain remove additional processing costs for this process amounts to $100,000. Both table products The company decided not to process the table cleaner into TSR and TP based on th Pro Table Table Stain Cleaner Remover (TSR) Production in ounces 300,000 300,000 Revenue $204,000 $168,000 Costs: CDG costs 70000* 52,500 TCP costs 0 50,000 Total costs 70,000 102,500 Weekly gross profit $134,000

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