Apples Galore, a local orchard grows and sells apples and apple pies. At harvest time, apples are sorted into saleable apples and defective apples. The defective apples are sold as animal feed to local cattle farmers. The saleable apples are sorted by size. The larger, visually appealing apples are sold as eating apples after special coating and packing. The smaller apples could be sold as seconds or processed further into apple pies, which are then sold at farmers' markets.

Apples Galore makes 4 pies from each bushel of apples. Joint costs for the apple orchard are $180,000. Additional information is as follows:

Allocation Base	Animal Feed	Eating	Seconds	Pies
Bushels of Apples	5,500	28,600	7,690
Sales value per bushel at harvest	$ 2.20	$8.5	$5
Additional processing costs		0.5 per bushel		$9.5/pie
Sales Value				$14.20 per pie

Required

1. Allocate the joint cost using the following methods:
   1. Sales value at split-off point
   2. Net realizable value
   3. Constant Gross Margin
2. Historical records indicate that demand for pies at the local farmers' markets totals 10,000 pies. Should Apples Galore sell seconds or make apple pies?