The WesternWestern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (December), the output at the splitoff point was as follows:

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	Product A, $322,400 gallons
	Product B, 119,600
	Product C, 52,000 gallons
	Product D, 26,000 gallons

The joint costs of purchasing and processing the crude vegetable oil were

$ 96,000.

WesternWestern

had no beginning or ending inventories. Sales of product C in December were

$24,000.

Products A, B, and D were further refined and then sold. Data related to December are as follows:

	Separable Processing Costs
	to Make Super Products	Revenues
Super A	$249,600	$320,000
Super B	102,400	160,000
Super D	152,000	160,000

WesternWestern

had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the December production:

	Product A, $ 84 000
	Product B, $ 72 ,000
	Product D, $ 60,000

Requirements

1.	Compute the gross-margin percentage for each product sold in December, using the following methods for allocating the $ 96 comma 000$96,000 joint costs:

	a.	Sales value at splitoff
	b.	Physical-measure
	c.	NRV

2.	Could WesternWestern have increased its December operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend.