Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year cost $600,000. Budde produced 10,000 gallons of X15, which sells for $40 per gallon and 40,000 gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint cost should be allocated to X15?

Select one:

a. $200,000

b. $400,000

c. $120,000

d. $150,000