Beca Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $540, is transformed using labor of $40 into 120 pounds of orange peels and 320 pints of juice. The company has determined that the sales value of 120 pounds of peels at the split-off point is $370, and the value of a pint of juice (not pasteurized or bottled) is $0.30. Beyond the split-off point, the cost of sugar-coating and packaging the 120 pounds of peels is $70. The cost of pasteurizing and packaging the 320 pints of juice is $250. A 120-pound box of candied peels is sold to commercial baking companies for $620. Each pint of juice is sold for $1.73.

Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 120-pound box of sugar-coated peels and the profit per pint of juice. (Round profit per pint of juice to 2 decimal places, e.g. 15.25 and other answers to 0 decimal places, e.g. 5,725. Round intermediate calculations to 2 decimal places, e.g. 0.6254. Enter loss using either a negative sign preceding the number e.g. -15.25 or parentheses e.g. (15.25).)

Allocation of joint costs to sugar-coated peels		$enter allocation of joint costs to sugar-coated peels in dollars
Allocation of joint costs to juice		$enter allocation of joint costs to juice in dollars
Profit per 120-pound box of sugar-coated peels		$enter profit in dollars
Profit (Loss) per pint of juice		$enter profit or loss per pint of juice

eTextbook and Media

What is the incremental benefit (cost) to the company of sugar-coating the peels rather than selling them in their condition at the split-off point?

The incremental select an option benefitcost of sugar-coating the peels

$enter incremental benefit or cost in dollars .

eTextbook and Media

What is the incremental benefit (cost) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point? (Round answer to 2 decimal places, e.g. 15.25.)

The incremental select an option benefitcost of pasteurizing and packaging a pint of juice

$enter incremental benefit or cost per pint in dollars rounded to 2 decimal places per pint.