Joint Product Cost Allocation—Market Value Method. Hamilton Company produces three products jointly.

During May, joint costs totaled $200,000. The following individual product information is available: LO5 Product C Product L Product T Production. 15,000 10,000 20,000 Salesunits. 13,000 9,000 16,000 Salesprice. $ 20.00 $ 15.00 $ 9.50 Separable processingcost. $75,000 $25,000 $40,000 Required:

(1) Compute the May gross profit, for each product and in total, using the market value allocation method.

(2) A customer has offered to buy all of Product T output at the split-off point for $7 per unit. Advise the Hamilton management.