BASF SE produces chemicals using process costing. In October 2025, the company incurs joint production costs of $50 million and produces chemicals A, B, and C. Chemical A has a sales value of $200 million, chemical B $150 million, and chemical C $100 million.

Required:

• Allocate joint production costs using the sales value at split-off method.
• Determine the joint cost allocation per unit for each chemical.
• Calculate the gross profit for each chemical after allocating joint costs.
• Analyze the impact of joint production on product profitability.
• Discuss alternative methods for allocating joint costs and their implications.