1. A food processing company incurs joint costs of $500,000 producing multiple products: Product A sales $300,000, Product B sales $200,000. Direct costs for Product A $150,000, Product B $100,000.
   • Requirements:
     • Allocate joint costs using the physical units method and the sales value method.
     • Prepare a joint cost allocation report for each product line.
     • Calculate the gross profit margin for each product after joint cost allocation.
     • Recommend pricing strategies for each product to maximize profitability.
     • Discuss the challenges of joint cost allocation in determining product line profitability.