GreenWood Co. recycles plastics to produce a variety of products. One of their processes yields two different outputs: Construction-grade (used in outdoors benches and tables), and Compression-type, used to create ergonomic flooring. One production run produces 200 pounds of Construction-grade plastics, and 100 pounds of Compression-type plastics.

GreenWood can process the plastics further, or can sell the raw materials to other companies. The process to produce one batch (before the split-off point) requires $60 of direct materials, $200 of direct labor, and $80 of variable overhead, with an allocation of $50 of fixed overhead. At the split-off point, Construction-grade plastics sell for $2/pound, and Compression-type plastics sell for $1/pound. Further processing of one batch requires the following:

Construction:

Direct Materials: $40

Direct Labor: $150

Variable Overhead: $50

Fixed Overhead: $10

Selling price of finished product: $600 per batch

Compression:

Direct Materials: $30

Direct Labor: $40

Variable Overhead: $20

Fixed Overhead: $10

Selling price of finished product: $250 per batch

If the optimal choices regarding each product are made, what is the Gross Profit realized on one batch?

Select one or more:

a. $100 / batch

b. $240 / batch

c. $160 / batch

d. $60 / batch

e. $40 / batch