Balrampur Chini Mills is headquartered in India and is the 6th largest sugar company in the world. BMC processes sugar cane into three products. During September 2020, the joint costs of processing were $600,000.

Molasses can be further processed for use in animal feed.

Raw sugar can be further refined into the white sugar used in most applications.

Fructose syrup can be further processed into high-fructose syrup for commercial baking.

Production and sales value information for the month were as follows:

Product

Units Produced

Sales Value at Split-off Point

Separable costs

Sales value after further processing

Molasses

15,000

$200,000

$60,000

$270,000

Raw Sugar

10,000

175,000

192,000

$405,000

Fructose Syrup

5,000

125,000

96,000

$230,000

Total

30,000

$500,000

$348,000

$905,000

Required: (6 points each for A and B, 3 for C)

1. Determine how the joint costs would be distributed if the Sales Value at Split Off method is used
2. Determine how the joint costs would be distributed if the Estimated NRVmethod is used.
3. Determine which of those two methods results in the highest GM%for molasses(show your work or logic)