The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Direct Materials processed: 27,500 gallons (after shrinkage)

Production:	Butter Cream	13,000	gallons
	Condensed Milk	14,500	gallons
Sales:	Butter Cream	12,500	gallons
	Condensed Milk	14,000	gallons
Sales Price:	Butter Cream	$3.50	per gallon
	Condensed Milk	$8.50	per gallon
Separable costs in total:	Butter Cream	$12,500
	Condensed Milk	$34,900

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $49,000. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross-margin percent for Kenton?

• A. 70.9%
• B. 71.9%
• C. 42.9%
• D. 40.8%