Toronto Food Products Limited produces gourmet chocolates at its main manufacturing plant in Toronto. A single process makes the chocolates as the main product and a by-product, chocolate chips that can also be sold. Both products are fully processed at the split off point and there are no separable costs. For the month of January, the cost of operations is $960,000. Production and sales information is shown in the following table: Production Sales (in kg) Selling Price (in kg) per kg Main product: chocolates 80,000 64,000 $ 30 Byproduct: chocolate chips 16,000 11,200 $ 7 There were no beginning inventories on January 1, 2020. Required: a) What is the gross margin for the company under the production method of by-product accounting? (5 marks) b) What is the gross margin for the company under the sales method of by-product accounting? (5 marks) c) List an advantage of the production method and list a disadvantage of the sales method of by-product accounting. (2 marks)