4. Halloway Inc. processes apples up to the split-off point, where two products, applesauce and apple juice, result. The following information was collected for the month of September: Production 30.500 litres Applesauce Apple juice 65.500 litres Sales Applesauce Apple juice $2.75 per litre Apples processed Purchase cost of 120,000 kilograms and processing costs to split-off point: Yield $1.50 per litre 120,000 kilograms $54,500 96,000 litres of saleable product Applesauce may be processed further to yield 5,500 kilograms of dried apple candy (the remainder is shrinkage). The additional processing cost is $17.50 per kilogram of candy The candy can be sold for $25 a kilogram Apple juice can be processed further to produce 85,000 litres of a sparkling fancy apple drink. The additional content is sparkling water. The additional processing cost per usable litre of drink is $3.50. The product can be sold for $6 per litre There are no beginning and ending inventory balances Using the sales value at split-off method, how much is Halloway's profit if only the apple juice is processed further into fancy apple drink, and all units of applesauce and fancy apple drink are sold? a) $85,000 b) $127,625 c) $199,250 d) $241,875