a Mich Chemical, Inc. is a large chemical company. It processes 150,000 pounds of XT100 in the distilling department at the cost of $169,000 to yield 13,000 pounds of AXT, 65,000 pounds of product BXT, and 10,000 pounds of product CXT. Product AXT is processed further in the Fussing department to yield 13,000 pounds of AMOS at the cost of $27,000 and sold for $12 per pound. Product BXT is sold without further processing at $6 per pound. Product CXT is processed further in the Solidifyng department to yield 10,000 pounds of CZ01 at the cost of $12,000 and sold for $3 per pound. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Required: 1. Use NRV methods to allocate joint costs and compute unit costs per pound for AXT, BXT, and CXT. (5%). 2. Use Physical methods to allocate joint costs, compute unit costs per pound for products AXT, BXT, and CXT. In what kind of situation Physical methods is preferable than NRV or splitoff method? (4 %). 3. The company could also sell the product AXT at splittoff point for $5. Should product AXT sell at the splitoff or process further? (4 %) 4. Use the NRV method for allocating joint costs, compute unit costs per pound for products AXT, BXT, and CXT. However, the company now treats CXT as a byproduct (recorded using the production method). The company requires a gross margin of 10% of revenues on its byproduct and needs to allow 20% of byproduct revenues for marketing costs. (7%)