Candice Company in Ningbo processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 98,000 gallons (after shrinkage) Production: Condensed goat milk 42,500 gallons Skim goat milk 55,500 gallons Sales: Condensed goat milk $3.50 per gallon Skim goat milk $2.50 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 98,000 gallons of saleable product was $184,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $4 per usable gallon of Xyla. Xyla can be sold for $20 per gallon. Skim goat milk can be processed further to yield 54,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon (of ice cream) of $4. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances. what is the estimated net realizable value of the Ice Cream at the split-off point? 1. $271,000 2. $364,000 3. $449,000 4. $561,000