Arlic Oceanic Water (AOW) desalinates and bottles sea water. The desalinated water is in high demand from a large group of environmentally conscious people on the west coast of Canada. During March, AOW processes 1,200 litres of sea water and obtains 1,200 litres of drinking water and 70 kilograms of sea salt (the rest of the sea water evaporates in the desalinization process). Processing the 1,200 litres of water costs AOW $2,100. AOW sells 1,080 litres of the desalinated water in 2-litre containers for $12 per container. In addition, AOW sells 60 kilograms of sea salt for $1.10 per kilogram. Due to the relatively small proportion of sea salt, AOW has decided to treat it as a byproduct. muired f ..... ' Requlrements 1 and 2. Assuming AOW accounts for the byproduct using the production method, what is the inventoriable cost for each product and AOW's gross margin? Calculate the gross margin and gross margin percentage for Artic Oceanic Inc. under the production method, and then for the sales method. (Only complete the necessary boxes, do not enter "0". Round interim calculations to the nearest cent. Round nal answers to the nearest whole dollar. Round the gross margin percentage to two decimal places.) Production Method Sales Method Revenues Main product Byproduct Total revenues Cost of goods sold Gross margin Gross margin percentage % \"A:- Arlic Oceanic Water (ADW) desalinates and bottles sea water. The desalinated water is in high demand from a large group of environmentally conscious people on the west coast of Canada. During March, AOW processes 1,200 litres of sea water and obtains 1,200 litres of drinking water and 70 kilograms of sea salt (the rest of the sea water evaporates in the desalinization process). Processing the 1,200 litres of water costs AOW $2,100. AOW sells 1,080 litres of the desalinated water in 2-litre containers for $12 per container. In addition, AOW sells 60 kilograms of sea salt for $1.10 per kilogram. Due to the relatively small proportion of sea salt, ADW has decided to treat it as a byproduct. muted Flequired Requirements 1 and 2. Assumi uroduct and AOW's gross margin? Calculate the gross margin and Q" . Assuming AOW accounts for the byproduct using the production method, what ' - (iny complete the necessary boxes, do "01 enter "0'" Round "1 is the inventoriable cost for each product and AOW's gross margin? 5'9'" percentage to \"\"0 decimal places.) . Assuming AOW accounts for the byproduct using the sales method, what is the inventoriable cost for each product and AOW's gross margin? . Discuss the difference between the two methods of accounting for byproducts. Revenues Main product Total revenues Cost of goods sold Gross margin Gross margin percentage % %