Doughnuts Company uses flour to produce two joint products, Premium and Deluxe. When processed, each pound of flour yields 8 units of Premium and 12 units of Deluxe. Premium doughnuts sell for $1.00 per unit and Deluxe sell for $2.00 per unit. The total cost to process a 10-pound batch of flour is $12.00.

Refer to Exhibit 7-9. If the physical quantities method is used to allocate the $12 in joint costs, how much will be allocated to Deluxe doughnuts?

Group of answer choices

$10.00

$7.20

$6.00

$4.80