Question: Joint process costs $472,000 (includes timber logs) Quantities produced 107,000 board feet of hardwood lumber 22,000 board feet of low-grade lumber Sales prices at split-off

Joint process costs $472,000 (includes timber logs) Quantities produced 107,000 board feet of hardwood lumber 22,000 board feet of low-grade lumber Sales prices at split-off $6.90 per board foot for hardwood lumber $2.60 per board foot for low-grade lumber "Paul, the sawmill owner, is meeting with other top managers as they consider avenues for increased profitability. They recognize that selling the lower-grade wood to other companies has certainly helped the mill's bottom line. However, they wonder if they could further process this wood themselves and make even more of a return." Determine the gross margin levels and percentages Paul is looking at for last year's results (assume all products produced were sold). Use the sales value at split-off method to allocate joint costs. (Round proportion to 4 decimal places, e.g. 0.2516, allocated joint costs and gross margin to 0 decimal places, e.g. 5,125 and gross margin percentage to 2 decimal places, e.g. 15.25%.) Hardwood Low-Grade Totals Allocated joint costs $ $ $ Gross margin $ $ $ "Gross margin percentages

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