Markups and Appendix A 1. Refer to Appendix A. Suppose that market prices were available at split-off of 70¢ for Product A and 40¢ for Product B. What is the joint cost applicable to A? to B? To what would you attribute the gross margin, the joint process or the separable process?

2. Suppose that market prices were available at split-off of 68¢ for Product A and 44¢ for Product B. What is the joint cost applicable to A? to B? To what would you attribute the gross margin, the joint process or the separable process? What is the role of bona fide market prices at split-off in management planning and control? Of computed approximate market prices? lop1