Jamon Beverages processes coffee and bottles it as Frappuccino, Cappuccino, and American. During the year the joint costs of processing the coffee were $270,000. There were no beginning or ending inventories. Production and sales value information were as follows:

		Sales Value
Product	Cases	at Split-Off	Separable Costs	Selling Price
Frappuccino	300,000	$9 per case	$5.00 per case	$32 per case
Cappuccino	200,000	$8 per case	$3.00 per case	$30 per case
American	400,000	$7 per case	$2.00 per case	$20 per case

1. Allocate the joint costs using gross margin percentage method