A company buys peaches directly from farmers, sorts them by size and quality, and packages them for resale to independent grocers. The company pays $320 per ton ($0.16 per pound) for the potatoes. The table below shows the average yield, costs associated with processing (sorting, grading, packaging), and expected selling price for the peaches.

	Average	Processing	Selling
	Yield	Costs	Price
Grade	(pounds)	(per pound)	(per pound)
Premium	1,000	0.10	0.60
standard	700	0.05	0.45
substandard	200	0.00	0.10
waste	100	0.00	0.00

What is the net realizable value of each grade of peaches?

A. $467.50, $372.50, $93.50, $46.75

B. $500.00, $280.00, $20.00, $0.00

C. $500.00, $280.00, $80.00, $40.00

D. $600.00, $315.00, $20.00, $0.00

The net realizable value method of joint-cost allocation, as used by this company, spreads costs to each grade of peaches in proportion to

A. Net revenues-generating potential

. B. Physical yields expected.

C. Selling prices.

D. A combination of yields and selling prices.