Question 16 (2.5 points)

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November, they incurred joint processing costs of $420,000. Production and sales value information for November are as follows:

Product	Cases	Selling Price/Case	Additional Costs/Case
Catsup	100,000	$10	$2
Tomato Juice	150,000	$8	$1
Canned Tomatoes	250,000	$12	$3

If the company has a philosophy of marking up their products 20% over cost, the selling price per case of Tomato Juice should be (using the net realizable value method) (round to 2 decimal places) Please kindly show step by step method to get the solution. Thank you

Question 16 options:

	$1.00
	$7.00
	$0.86
	$2.06