J'nint Ens ts :51 Tran sfer Pricing Entnpaki makes backpacks. Traditinnallv, theyr bnught fabric in quantitv, and cut nut the fnrms fnr their backpacks frnm large pieces, discarding the interstitial material as scrap. Due tn the integrated nature nf the prnductinn facility, the cnst nf all this fabric was cnnsidered a jnint cnst, allncated bv the apprnkimate relative sales value methnd, and the scraps were cnnsidered a waste bv-prnduct. Recentlyr hnwever, an enterprising emplnvee had the great idea tn use these scraps and make small, unique bags frnm the heretnfnre-discarded pieces nf fabric. The cnmpanvr agreed tn implement this idea nn a trial basis, and the accnunting department decided tn cnnsider these bags a bv-prnduct using the net realizable value methnd. The marketing department set the price fnr the bv-prnduct bags at $511}, and in the rst vear nf prnductinn, l nf these scrap bags were snld. At the end nf the rst year, the accnunting department determined that each bag incurred an additinnal prncessing cnst nf $412} nn average in additinnal materials (straps, buckles, thread, etc.], labnr, and variable nverhead {nnt including the cnst nf the scrap fabric frnm whence thevr camel