Dairy Company processes raw milk up to the splitoff point where two products, condensed milk and skim milk result. The following information was collected for the month of April: Direct Materials processed: 130,000 gallons Production: condensed milk 50,000 gallons skim milk 60,000 gallons Sales at splitoff point: condensed milk 30,000 gallons@ $3 per gallon skim milk $5,000 gallons @ $2 per gallon The costs of purchasing the 130,000 gallons of raw milk and processing it up to the splitoff point was $200,000 Condensed milk may be processed further to produce 50,000 gallons of a medicinal milk product, XYL, for an additional processing cost of $150,000. XYL can be sold for $18 per gallon. Skim milk can be processed further to produce 60,000 gallons of ice cream, for an additional processing cost of $180,000. The ice cream can be sold for 59 per gallon. Using the net realizable value method, 1- Allocate the joint costs 2- Calculate cost per gallon of XYL. 3- Calculate gross margin for XYL