# The company decided not to process the table cleaner

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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) Table Polish (TP) Total Production in ounces 300,000 300,000 300,000 Revenues \$204,000 \$168,000 \$168,000 \$336,000 Costs: CDG costs 70,000* 52,500 52,500 105,000** TCP costs 0 50,000 50,000 100,000 Total costs 70,000 102,500 102,500 205,000 Weekly gross profit \$134,000 \$ 65,500 \$ 65,500 \$131,000 *If table cleaner is not processed further, it is allocated 1/3 of the \$210,000 of CDG cost, which is equal to 1/3 of the total physical output.
**If table cleaner is processed further, total physical output is 1,200,000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CDG cost. Instructions 1. Determine if management made the correct decision to not process the table cleaner further by doing the following. 1. Calculate the company's total weekly gross profit assuming the table cleaner is not processed further. 2. Calculate the company's total weekly gross profit assuming the table cleaner is processed further.