Corn Co. refines corn from a joint manufacturing process into three products: Corn Oil, Corn Syrup and Corn Starch. Current production was 24,000 gallons of Corn Oil, 17,000 gallons Corn Syrup and 6,000 packages of Corn Starch. Selling prices per unit at split-off point are $10.00, $8.00, and $4.00 respectively. Joint costs up to the split-off point are $300,000.

Corn Oil can be processed further into CO Plus for an additional cost of $107,800. Corn Syrup can be processed further into CS Plus for additional costs of $27,200. CO Plus sells at a price of $12.50 per gallon and CS Plus sell for $11.00 per gallon. Corn Starch cannot be processed further and must be sold at split-off.

a.Determine the amount of joint costs allocated to each product using the Sales Value at Split-Off method. (round intermediate calculations to four decimals, round answers to dollars).

b.Determine the amount of joint costs allocated to each product using the Net Realizable Value (NRV) method. (round intermediate calculations to four decimals, round answers to dollars)

c.Which product mix combination of the production and sale of each product maximizes total operating income for Corn Co.? Show calculations and specify the product mix combination.