Business, 12.03.2021 16:00 2021ehays

Yukon Perfume Corporation manufactures three distinct perfumes (I, II, and III) from a single joint process. The three perfumes can be sold to discount stores in the form they are in the split-off point. However, if the perfumes are further processed, they can be sold to speciality stores. Costs related to each batch of perfume separation is as follow : Perfume I Perfume II Perfume III
Sales value at split-off point $1,500 $800 $900
Allocated joint costs $1,000 $1,000 $1,000
Sales value after further processing $3,500 $2,500 $2,000
Cost of further processing $1,600 $1,400 $500
For which product(s) above would it be more profitable for Yukon to sell after further processing rather 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

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Yukon Perfume Corporation manufactures three distinct perfumes (I, II, and III) from a single joint...

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