# Good Earth Products produces orange juice and candied orange peels.

Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing \$520, is transformed using labor of \$40 into 110 pounds of orange peels and 290 pints of juice. The company has determined that the sales value of 110 pounds of peels at the split-off point is \$350, and the value of a pint of juice (not pasteurized or bottled) is \$0.4. Beyond the split-off point, the cost of sugar-coating and packaging the 110 pounds of peels is \$50. The cost of pasteurizing and packaging the 290 pints of juice is \$250. A 110-pound box of candied peels is sold to commercial baking companies for \$620. Each pint of juice is sold for \$1.71.Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 110-pound box of sugar-coated peels and the profit per pint of juice. What is the incremental benefit (cost) to the company of sugar-coating the peels rather than selling them in their condition at the split-off point?