Bramble Sawmill Co. runs rough logs through its cutting facility for the primary purpose of producing hardwood lumber. In this process, however, not all of the wood is of high enough quality to be sold as hardwood lumber. The other joint product, lower-grade lumber, has been sold as-is to other manufacturers to make wood pallets. Last year, the following quantities and sales prices were reported. Joint process costs Quantities produced Sales prices at split-off $537,000 (includes timber logs) 102,000 board feet of hardwood lumber 21,000 board feet of low-grade lumber $7.20 $2.30 per board foot for hardwood lumber per board foot for low-grade lumber Paul, the sawmill owner, is meeting with other top managers as they consider avenues for increased profitability. They recognize that selling the lower-grade wood to other companies has certainly helped the mill's bottom line. However, they wonder if they could further process this wood themselves and make even more of a return.

Bramble Sawmill Ca runs rough logs through its cutting facility for the primary purpose of producing hardwood lumber. In this process, however, not all of the wood is of high enough quality to be sold as hardwood lumber. The other joint product, lower-grade lumber, has been sold as - is to other manufacturers to make wood pallets. Last year, the following quantities and sales prices were reported. Paul, the sawmill owner, is meeting with other top manogers as they consider avenues for increased profitability They recognize that selling the lower-grade wood to other companies has certainly helped the mill's bottom line. However, they wonder if they could further process this wood themselves and make even more of a return. Determine the gross margin levels and percentages Paul is looking at for last year's results (assume all products produced were soldi): Use the sales value at split-off method to allocate joint costs. (Round proportion to 4 decimal places, eg 0.2516 , allocated joint costs and gross margin to 0 decimal ploces, es. 5,125 and gross margin percentoge to 2 decimal places, es. 15.25\%)