Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year cost $600,000 . Budde produced 10,00 . gallons of X15, which sells for $40 per gallon and 40,00 . gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint cost should be allocated to X15?
a. $200,000
b. $400,000
c. $120,000
d. $150,000
a
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