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Delicious Dairy produced 600 gallons of heavy cream and 1,400 gallons of skimmed milk and incurred $1,400 of joint costs at the split-off point. How
Delicious Dairy produced 600 gallons of heavy cream and 1,400 gallons of skimmed milk and incurred $1,400 of joint costs at the split-off point. How much of this cost will be allocated to skimmed milk using the physical units method? Round percentages to the nearest whole percentage.
a. $420
b. $1,400
c. $1,148
d. $980
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