Sales price (without further processing) Sales Price (after futher processing) Units of Production 32,500 27,900 14,600 Joint Costs 35 150,000 Joint Cost Allocation Ratio 43% 37% 19% Joint Cost Allocation $ 65,000 $ 55,800 $ 29,200 Revenue w/o further processing $ 113,750 $ 195,300 $ 57,670 Net Realized Margin w/further processing 35 121,875 $ 174,375 $ 57,670 Net Realizable Value Gross Revenue Cost of Additional Processing Cost of Joint Production Gross Margin