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d. Briefly explain Why tuieiu costs. PROBLEM 7-14. Joint Costs and Additional Processing [LO 2] Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $500, is trans formed using labor of $50 into 100 pounds of orange peels and 300 pints of juice. The compan has determined that the sales value of 100 pounds of peels at the split-off point is $350, and the value of a pint of juice (not pasteurized or bottled) is $0.40. Beyond the split-off point, the cost of sugar-coating and packaging the 100 pounds of peels is $60. The cost of pasteurizing and packag. ing the 300 pints of juice is $250. A 100-pound box of candied peels is sold to commercial bakin companies for $600. Each pint of juice is sold for $1.75. REQUIRED a. Allocate joint costs using the relative sales values at the split-off point, and calculate the proft per 100-pound box of sugar-coated peels and the profit per pint of juice. Round to the nearest b. What is the incremental benefit (cost) to the company of sugar-coating the peels rather than c. What is the incremental benefit (cost) to the company of pasteurizing and packaging a pintof dollar. selling them in their condition at the split-off point? juice rather than selling the juice at the split-off point