Use the following to answer questions:
The Stanford Corporation produces three outputs: A, B and C from one input. The net-realizable-value of A at the split-off point is $200,000. The net-realizable-value of B at the split-off point is $400,000 and the net-realizable- value of C at the split-off is $50,000. Final sales values are $400,000, $600,000 and $50,000 for A, B and C respectively. However, these prices are subject to erratic change. The additional processing costs for A, B and C are $100,000, $150,000 and $0 respectively. Stanford produces 120,000 units of A, 120,000 units of B and 60,000 units of C. The total costs incurred up to the split-off point are $300,000
-What is the expected gross margin for Stanford Corporation?
A) $350,000
B) $450,000
C) $500,000
D) The expected gross margin cannot be determining without knowing how joint-costs will be allocated

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The Answer of Use the following to answer questions:
The Stanford Corporation produces three outputs: A, B and C from one input. The net-realizable-value of A at the split-off point is $200,000. The net-realizable-value of B at the split-off point is $400,000 and the net-realizable- value of C at the split-off is $50,000. Final sales values are $400,000, $600,000 and $50,000 for A, B and C respectively. However, these prices are subject to erratic change. The additional processing costs for A, B and C are $100,000, $150,000 and $0 respectively. Stanford produces 120,000 units of A, 120,000 units of B and 60,000 units of C. The total costs incurred up to the split-off point are $300,000
-What is the expected gross margin for Stanford Corporation?
A) $350,000
B) $450,000
C) $500,000
D) The expected gross margin cannot be determining without knowing how joint-costs will be allocated

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