Joint product decisions The Pearly Waters Perfume Company manufactures various qualities of perfumes and colognes. One popular line of colognes includes three products that result from a joint production process. Below are data from the most recent month of production:

As the new controller, you are called into the president's office with the director of marketing.
The president says, "I don't understand your product cost report. Either we are selling our largest-volume product at a loss, or the product cost data are all wrong. Now which is it?"

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Price per Cost Joint after Total Product Evergreen Bottle Quantity Cost Split-Off Cost $ 4 10,000 $2.80 $2 $4.80 Morning Flower 10 6,000 2.80 4 6.80 Evening Flower 15 4,000 2.80 5 7.80