April Treats, a sweet treat company, needs your help. In their Candy Division, they process sugar cane into refined sugar, taffy, and beet pulp. In the production process, the cost to purchase and process the sugar is $90,000. The net realizable value of joint products are: $100,000 for refined sugar and $75,000 for the taffy. The beet pulp is a by-product which is used to feed horses and other livestock with a net realizable value of $20,000. Their supply of refined sugar and taffy has all been sold in the current year. However, none of the beet pulp has sold this year.

Charles (Cad) Berry, the supervisor of the Candy Division has his annual bonus tied to a percentage of profits for the current year. His aim is to maximize his bonus for the current year, and then plans to leave the company and take a job with their competitor, Kit & Catherine's (Kit-Cats') Chocolate, in the upcoming year.

Required:

Which treatment of by product costing (Sales or Production Method) would Cad Berry (supervisor) prefer? Provide FULL calculations to support your decision and explain why the method you chose achieves this.