opit 10 Practice questions (2) - Protected View - Saved v ,..C' Sea'ch -n:es Mailings Review Vlew Help in viruses Unless yo need to edit, it's saler to stay in Protecled View. I |:nnblr: toiling 3. Joint products: whether to sell or grocess further Every day Maotai Manufacturing processes 1,000 kilograms of grapes into two products: 'cooking wine' and \"cocktail wine'. For every 1,000 kilograms of grapes processed the company incurs joint processing costs of $60,000. It allocates $35,000 of these costs to cooking wine and $25,000 to cocktail wine. (This allocation is made on the basis of the relative quantities produced of the two products.) Each batch of cooking wine can be sold for $80,000. Alternatively, it can be processed further to make 'cask wine' at an additional processing cost of $50,000, and then sold for $150,000. Each day's batch of cocktail wine can be sold for $90,000. Alternatively, it can be processed further to make 'red emperor wine', at an additional processing cost of $60,000, and then be sold for $130,000. Requirements (a) What products would you recommend that Mao-tai Manufacturing produce