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Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are shown

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Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all production required additional separable processing. Total joint cost for the three products is $3,040,000 A101 A204 3216 Gallons sold 190,000 149,000 133,000 Tinal sales price per gallon 14 Price at split-off 11 Separable processing cost $ 597,000 $ 110,000 $422,000 $ Required: 1. Calculate the unit product cost and total gross margin for each of the three product lines using the following methods: (a) physical measure method, (b) sales value at split-off method, (c) the net realizable value method, and (c) the constant gross margin percentage method. (Round intermediate calculations and cost per unit answers to 4 decimal places. Round your final answers to whole dollar amounts. Negative amounts should be indicated with a minus sign.) A101 A204 B216 a. Physical Measure Method Cost per unit Total gross margin b. Sales Value at Split-Off Method Cost per unit Total gross margin c.Net Realizablo Value Method Cost per unit Total gross margin d. Constant Gross Margin Method Cost per unit Total gross margin 2. Which of the four methods do you think would be preferred in this case? Physical measure method Sales value at split-off method O Net realizable value method Constant gross margin method

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