Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000, which are allocated based on the number of pounds produced. Type of Number of Price per pound Total further Price after at split-off processing powder costs pounds processing further Talcom $10 $25,000 10,000 $12.0 Baby $8 $12,000 20,000 $9.0 Regular $5 $30,000 50,000 $5.5 If Regular is processed further, the gross margin that will appear in a product line income statement for Regular would be: $150,000 $125,000 0 0 0 0 $120,000 $245,000