X Question process. The three perfumes can be sold to discount stores in the for

Question

X Question process. The three perfumes can be sold to discount stores in the form they are in at the split-off point. However, if the perfumes are further processed, they can be sold to specialty stores. Costs re each batch of perfume separation is as follows: Perfume I Perfume II Perfume III S1,600 000 $1.000 Sales value at split-off point S800 1,500 $1,000 S3.500 S1,600 Allocated joint costs. Sales value after further processing $2,500 $1.400 Cost of further processing $500 For which producto) above would it be more profitable for Yukon to sell after further processing rather than at the split-off point? A. 1 only B. III only C. 1 and II only D. l and II only E. I. II. and 111

Explanation / Answer

Answer:-Products Perfume I and Perfume II would be more profitable for Yukon to sell after further processing rather than split-off point.

Explanation:-

Yukon Perfume Corporation Statement of Profitablity of three products Particulars Perfume I Perfume II Perfume III $ $ $ Sale value after further processing 3500 2500 2000 Less:- Sales value at split-off point 1500 800 1600 Incremental value from further processing 2000 1700 400 Less:- Cost of further processing 1600 1400 500 Profit (loss) from further processing 400 300 (100)

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