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egligible costs in a local drainage area. In June, the following data were reported for the production and sales of beef-flavoured and shrimp-flavoured ramen: (Click
egligible costs in a local drainage area. In June, the following data were reported for the production and sales of beef-flavoured and shrimp-flavoured ramen: (Click the icon to view the production and sales data.) spectively. The monthly data for all the products follow: Production and sales data Monthly data for all products 1. Calculate Tasty's gross margin percentage for Special B and Special S when joint costs are allocated using: a. Sales value at splitoff method b. Physical measure method c. Net realizable value method 2. Recently, Tasty discovered that the stock it is dumping can be sold to cattle ranchers at $6 per ton. In a typical month with the production levels shown above, 2,500 tons of stock are produced and can be sold by incurring marketing costs of $13,300. Sara Donahue, a management accountant, points out that if the stock is treated as a joint product and the sales value at splitoff method is used, the stock product would lose about $2,861 each month, so it should not be sold. How did Donahue arrive at that final number, and what do you think of her analysis? Should Tasty sell the stock
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