15. ) from a single joint procoss. The three perfumes can be sold to discount st

Question

15.

) from a single joint procoss. The three perfumes can be sold to discount stores in the form they are in at the split-off point. However, if t 15. Yukon Perfume Cerporation manufactures three distinet he perfimes are fürther processed, they can be sold to specialty stores. Costs related to cach batch of perfume separation is as follows: Perfume l Perfume ll Perfume 111 $800 $1,600 $1,000$1000$1,000 $2.000 $500 $1,500 Sales vatue at split-off point Allocated joint costs Sales value after furtlher processing Cost of further processing. $3,500 $1,600 51400 $2.500 For whichi products) above would it be more profitable for Yukon to sell after further processing rather than si the split-off point? B. Ill only C., J and Il only li and 11 only EL.ad im

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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