of floor and 286350 ounces of table cleaner The foor Table S

of floor and 286,350 ounces of table cleaner. The foor Table

Solution

1) Table Cleaner Not Processed Further Sales FloorShine (572,700 ÷ 30) X $18 $343,620 Table Cleaner (286,350 ÷ 25) X $30 $343,620 Total Sales $687,240 Less: COGS CDG costs $211,500 Additional costs of FloorShine $240,841 Total Costs $452,341 Gross profit $234,899 2) Table Cleaner Processed Further Sales FloorShine (572,700 ÷ 30) X $18 $343,620 Table Stain Remover (286,350 ÷ 25) X $21 $240,534 Table Polish (286,350 ÷ 25) X $21 $240,534 Total Sales $824,688 Less: COGS CDG costs $211,500 Additional costs of FloorShine $240,841 TCP $105,400 Total Costs $557,741 Gross profit $266,947 3) If the table cleaner is processed further overall company profits will be ($266947 - $234899 = $32048) higher. Therefore, management made the wrong decision by choosing to not process table cleaner further. $32,048