Reference no: EM132738663

The Procedure of cocoa bean processing division is as follows: Starts with Raw cocoa beans at a cost, then it moves to the roasting/refining process (cost $6500), then moves to chocolate liquor (sales value $54000), then to process/drying (cost $3800), after the process/drying it splits off going to either a)cocoa cakes with sales of $17550 OR cocoa butter with sales $31900. The cocoa cakes is processed further into grinding/packaging at cost of $6500 and then into canned baking cocoa.

Problem 1: Assess Total gross profits & total gross margin % of each of the following options (include total joint costs in calculation, but don't allocate the joint costs to individual products): i) Current sales of cocoa butter and cocoa cakes ii) Proposed sales of cocoa butter and canned, powdered baking cocoa iii) Proposed sales of chocolate liquor