15. Yukon Perfume Corporation manufactures three distins vertines process. The t

Question

15. Yukon Perfume Corporation manufactures three distins vertines process. The three perfumes can be sold to discount stores in the form any att in the However, if the perfumes are further processed, they can be sold to specialry sores Cent each batch of perfume separation is as follows Costs related Perfumel Perfume 11 Perfume 133 Sales value at split-off point . Allocated joint costs Sales value after further processing... Cost of further processing. $1 500 St.900 $1,500 $800 $1,000 $1.000 $3,500 $1,600$2500 $2900 $1 400 $500 For which product(s) above would it be more profitable for Yukon to sell after furher pross than at the split-off point? A. I only B. III only C. I and II only D. II and III only E. I, II, and III

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 (option C).

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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