ABC Co. develops four mobile applications in a joint process as follows:

	Hunger station	Talabat	Mrsool	Tawakalna	Total
Applications downloaded	52,000	60,000	18,000	28,000	158,000
Sales value at split off	$240,000	$40,000	$10,000	$35,000	$325,000
Additional cost if developed further	$28,000	$40,000	$20,000	$15,000	$103,000
Sales value if processed further	$280,000	$60,000	$15,000	$45,000	$400,000
Joint costs					$250,000

Required:

(a) Determine which products should be sold at split-off and which should be processed further (show supporting calculations/schedule).

(b) Assuming the company makes decisions that are in its best interests for overall profitability, what would be the company's gross margin?