1.Weekly gross profit = 20,200*22 – 255,500 + 242400 - 210300 = $221,000 |
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2.If processed further = 20,200*22 – 255,500 + 181,800+181,800 – 210300 - 107000 = $235,200 |
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Made wrong decision |
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Don’t Process |
Process |
Net Income Increase |
|
Incremental Revenue |
242,400 |
363,600 |
121,200 |
Incremental costs |
0 |
107000 |
(107,000) |
Totals |
242,400 |
256,600 |
14,200 |
Should process further
Garretning The industrial Pa diversified in the c a re o predictwem table deaner and a...
CES NEXT Pronghorn Industrial Products Inc. is a diversified Industrial cleaner processing company. The company's Dargan plant produces two products: a table cener and a floor cener from a common of chemical Inputs (CDG). Each week, 855,000 ounces of chemical Input are processed at a cost of $207,000 into 570,000 ounces of Moor cleaner and 285.000 ounces of table deaner. The floor deaner has no market value until it is converted into a polish with the trade name FloorShine. The...
Problem 20-03A Thompson Industrial Products Inc. (TIPI) is a diversified industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 918,000 ounces of chemical input are processed at a cost of $208,200 into 612,000 ounces of floor cleaner and 306,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name FloorShine....
Thompson Industrial Products Inc. (TIPI) is a diversified industrial cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 895,500 ounces of chemical Input are processed at a cost of $210,900 into 597,000 ounces of floor cleaner and 298,500 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name Floor Shine....