Question: [Note) To answer next 4 questions that require joint cost allocations, refer to the following information (this same data will appear on each screen of

[Note) To answer next 4 questions that require joint cost allocations, refer to the following information (this same data will appear on each screen of the related question!): Sawmill, Inc. processes wood pulp into three grades of plywood: Hardwood, Softwood, and Decorative. Each grade of plywood may be sold as is at the split-off point or processed further to a higher grade of product, with the price and cost information shown below. The joint processing cost to get the wood pulp to split-off is $16,000. Sawmill, Inc. desires to maximize its profit by making an optimal sell-or-process-further decision for each grade of plywood, and also allocate its joint costs according to such decisions. Board-feet produced Selling price per board-feet at split-off Cost after split-off (per board-feet). Selling price per board-feet after split-off Product Hardwood 2,500 $5.5 $2.0 $8.0 Softwood 3,000 3.0 1.5 5.0 Decorative 4,500 7.0 3.5 10.0 What would be the amount of gross margin expected for Decorative plywood if the joint cost were allocated by the Net Realizable Value method (Round numbers to 4 decimal places if needed & choose the closest value to your answer!)? $8,841.6 O $22,658.4 $8,547.2 O $20,702.8
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