Answer the following question$($s$)$ using the information below:

The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October:

Direct materials processed:$65,000$ litres $($shrinkage was $10\%)$

Production:condensed goat milk$26,100$ litres$$skim goat milk$32,400$ litres$$Sales:condensed goat milk$$3\mathrm{.}50$ per litre$$skim goat milk$$2\mathrm{.}50$ per litre

The costs of purchasing the $65,000$ litres of unprocessed goat milk and processing it up to the splitoff point to yield a total of $58,500$ litres of salable product was $$72,240.$ There were no inventory balances of either product.

Condensed goat milk may be processed further to yield $19,500$ litres $($the remainder is shrinkage$)$ of a medicinal milk product, Xyla, for an additional processing cost of $$3$ per usable litre. Xyla can be sold for $$18$ per litre.

Skim goat milk can be processed further to yield $28,100$ litres of skim goat ice cream, for an additional processing cost per usable litre of $$2\mathrm{.}50.$ The product can be sold for $$9$ per litre.

There are no beginning and ending inventory balances.

Using the sales value at splitoff method, what is the gross margin percentage for condensed goat milk at the splitoff point?

Question $8$Answer

a$.$

$55\mathrm{.}1\%$

b$.$

$41\mathrm{.}9\%$

c$.$

$21\mathrm{.}1\%$

d$.$

$58\mathrm{.}1\%$

e$.$

$38\mathrm{.}2\%$