p6-3a - Name: Date: Instructor: Course: Managerial...

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FileName: 6b2171a08de0afe4194d4293dc8ad4b2b3b2af0b.xls, Tab: Problem P6-3A, Page 1 of 2, 12/28/2011, 19:02:02 Name: Date: Instructor: Course: produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week 900,000 ounces of chemical input are processed at a cost of $210,000 into 600,000 ounces of floor cleaner and 300,000 ounces of table cleaner. The floor cleaner has no market value unit it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $250,000 FloorShine sells at $20 per 30 ounce bottle. The table cleaner can be sold for $25 per 30 ounce bottle. However, the table cleaner can be converted into two other products by adding 300,000 ounces of another compound (TCP) to the 300,000 ounces of table cleaner. This joint process will yield 300,000 ounces each of the table stain remover (TSR) and the table polish (TP). The additional processing costs for this process amount to $100,000 Both table products can be sold for $18 per 30 ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis: Further Process Total Product in ounces (300,000) 300,000 300,000 Revenue $250,000 $180,000 $180,000 $360,000 Costs: CDG costs 70,000 52,500 52,500 105,000 TCP costs 0 50,000 50,000
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This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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p6-3a - Name: Date: Instructor: Course: Managerial...

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