Yukon Perfume Corporation Manufactures Three Distinct Perfumes (I, II, and III)

question 178

Multiple Choice

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 at the split-off point. However, if the perfumes are further processed, they can be sold to specialty stores. Costs related to each batch of perfume separation is as follows: 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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