Tasty Foods produces two types of microwavable productsbeef-flavoured ramen and shrimp-flavoured ramen. The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as stock, which Tasty dumps at negligible costs in a local drainage area. In June, the following data were reported for the production and sales of beef-flavoured and shrimp-flavoured ramen:

Joint Costs (costs of noodles,spices and other inputs and processing to spiltoff point)

Joint Cost

$250,000

Beef Ramen Shrimp Ramen

Beginning Inventory (tons) 0 0

Production (tons) 8000 19000

Sales (tons) 8000 19000

Selling Price per ton $20 $25

Due to the popularity of its microwavable products, Tasty decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are able to be sold under the names Special B and Special S, respectively. The following is the monthly data for all the products:

Joint Costs Speical B Speical S

Joint Cost (costs of noodles,spices and

other inputs and processing to spiltoff point) $250,000

Separable costs of processing 8,000 tons of

Beef Ramen into 11,000 tons of Special B $55,000

Separable costs of processing 19,000 tons of

Beef Ramen into 25,000 tons of Special S $150,000

Beef Ramen Shrimp Ramen Special B Special S

Beginning Inventory (tons) 0 0 0 0

Production (tons) 8000 19000 11000 25000

Transfer for further processing (tons) 10000 8000 19000

Sales (tons) 11000 25000

Selling Price per ton $20 $25 $17 $32

Required:

Calculate Instants gross-margin percentage for Special B and Special S when joint costs are allocated using the following:

a. sales value at splittoff method

b. physical measure method

c. net realizable value method.