Mission Mountain Inc. buys one input, white grapes, and converts it into wine through a pressing process. Through its patented pressing process in the Okanagan Valley, Mission Mountain converts white grapes into two types of white wine, Chardonnay and Pinot Grigio. After the pressing process, Mission Mountain has the option to sell white wine in bulk to Bostco Wholesale Ltd. who bottles wine under its own private label, Dirkland. Bostco will pay $15.00 per litre of Chardonnay and $8.00 per litre of Pinot Grigio. Mission Mountain is considering processing Chardonnay into 1 litre bottles of Sparkling Wine at a cost of $3.00 per bottle. Each bottle would sell for $20.00. In addition, Mission Mountain is considering packaging Pinot Grigio into Boxed Wine at a cost of $1.95 per box. Each box is 3 litres and would sell for $25.00 per box. For the month of April 2021, Mission Mountain has signed a contract to purchase white grapes for $395,000 and estimates to incur total pressing costs of $145,000. Mission Mountain projects to yield 56,250 litres of Chardonnay and 72,000 litres of Pinot Grigio. Required: a) Determine whether it is economical for Mission Mountain to further process Chardonnay into Sparkling Wine. Make a recommendation on whether or not to proceed with the bottling process. (4 marks) b) Determine whether it is economical for Mission Mountain to further process Pinot Grigio into Boxed Wine. Make a recommendation on whether or not to proceed with the boxing process. c) Implementing your recommendations from Part A and Part B, allocate the April 2021 total joint cost to your recommended products using the: i. Physical measure method ii. Sales value at split-off method iii. Net realizable value (NRV) method iv. Constant gross margin percentage method d) Which allocation basis in Part C do you favour the most? Briefly explain your position.