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Sawmill, Inc. processes wood pulp into three grades of plywood: Hardwood, Softwood, and Decorative. Each grade of plywood may be sold as is at the
Sawmill, Inc. processes wood pulp into three grades of plywood: Hardwood, Softwood, and Decorative. Each grade of plywood may be sold as is at the split-off point or processed further to a higher grade of product, with the price and cost information shown below. The joint processing cost to get the wood pulp to split-off is $16,000. Sawmill, Inc. desires to maximize its profit by making an optimal "sell-or-process-further" decision for each grade of plywood, and also allocate its joint costs according to such decisions. Selling price Cost after Selling price Board-feet per board-feet split-off per board-feet Product produced at split-off (per board-feet) after split-off Hardwood 2,500 $5.5 $2.0 $8.0 Softwood 3,000 3.0 1.5 5.0 Decorative 4,500 7.0 3.5 10.0 How much joint cost would be allocated to Softwood plywood if the Net Realizable Value method was used (Round numbers to 4 decimal places if needed & choose the closest value to your answer!)? $4,211.2 $3,068.8 $8,841.6 $2,947.2 What would be the Gross Margin as a % of Sales Revenue computed for each joint product if the company used the Constant Gross Margin % method (Round numbers to 4 decimal places if needed & choose the closest value to your answer!)? 75.94% 48.44% 68.44% 61.65% How much joint cost would be allocated to Hardwood plywood if the Sales Value at Split- Off method was used (Round numbers to 4 decimal places if needed & choose the closest value to your answer!? $4.000.0 $2,654.4 $4,056.0 $4,812.8 What would be the amount of gross margin expected for Decorative plywood if the joint cost were allocated by the Net Realizable Value method (Round numbers to 4 decimal places if needed & choose the closest value to your answer!)? $22,658.4 $8.841.6 $20,702.8 $8,547.2
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