ACC 560 MART Extraordinary Success/acc560mart.com ACC 560 MART Extraordinary Success/acc560mart.com | Page 35

Product
Spock
$300,000 $210,000 $40,000 $110,000
Uhura
400,000 300,000 60,000 85,000
80,000 250,000
Sulu
800,000
455,000
Instructions
a. Determine whether each of the three joint products should be sold
as is, or processed further.
P7-3A
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, 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 until it is converted into a polish with the trade name
Floor Shine. The additional processing costs for this conversion
amount to $240,000.
Floor Shine sells at $20 per 30-ounce bottle. The table cleaner can be
sold for $17 per 25-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 table stain remover