As a start-up company, Oriole Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Sharon is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very highvalue product. Sharon is intrigued enough to dig further into her intern's quantitative analysis, as follows. (a) Your answer is correct. Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint costs to these products. The intern must have used the method. eTextbook and Media Attempts: 3 of 4 used (b) Calculate how much total cost the intern included in the above estimate for (1) the joint process and (2) further processing of product Y. (Round answers to 0 decimal places, e.g. 5,125.) (1) The joint process $ (2) Further processing of product Y $ (c) Oriole's owners expect all of the company's products to generate a minimum 49% gross margin. Prepare partial income statements for each product and for the company overall, assuming all of the products produced are sold. Comment on whether these two products satisfy that expectation. (Round gross margin percentage to 1 decimal place, e.g. 15.2\%.) As a start-up company, Oriole Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Sharon is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very highvalue product. Sharon is intrigued enough to dig further into her intern's quantitative analysis, as follows. (a) Your answer is correct. Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint costs to these products. The intern must have used the method. eTextbook and Media Attempts: 3 of 4 used (b) Calculate how much total cost the intern included in the above estimate for (1) the joint process and (2) further processing of product Y. (Round answers to 0 decimal places, e.g. 5,125.) (1) The joint process $ (2) Further processing of product Y $ (c) Oriole's owners expect all of the company's products to generate a minimum 49% gross margin. Prepare partial income statements for each product and for the company overall, assuming all of the products produced are sold. Comment on whether these two products satisfy that expectation. (Round gross margin percentage to 1 decimal place, e.g. 15.2\%.)