Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping box inserts) that originate from the trimmings of Pyramids paper rolls in production. The food wrapping and book covers are the same size. The shipping box inserts are sold to online retailers for shipping books. All joint and byproducts are sold as sustainable alternatives to other recycling opportunities.

Pyramids cost information by process is as follows: Pyramid Printing Company Products	Pounds of production	Cost
Magazines	500,000	$1,750,000
Retail inserts	400,000	1,500,000
Food wrapping	100,000	1,000,000
Book covers	200,000	1,800,000
Shipping box inserts (byproduct)	30,000	50,000

The shipping box inserts can be sold for $1,000,000 to online retailers.

a. Determine the cost of food wrapping and book covers if the sales method is used for shipping box inserts.

b. Determine the cost of food wrapping and book covers if the production method is used for shipping box inserts.

c. Which method do you suggest is best for Pyramid?