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Dupri Perfume Corporation manufactures three distinct perfumes (Floral, Fruity, and Fresh) from a single joint input. The three perfumes can be sold to discount stores
Dupri Perfume Corporation manufactures three distinct perfumes (Floral, Fruity, and Fresh) from a single joint input. 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 is as follows: Floral Fruity Fresh Sales value at split-off point $2,500 $3,500 $4,000 Allocated joint product costs 1,500 2.100 2,400 Sales value after further processing 3,500 4,800 5,700 Cost of further processing 1. 100 1.400 1,300 For which product(s) above would it be more profitable for Dupri to sell after further processing rather than at the split-off point? Fruity only Floral and Fruity only Fresh only Fruity and Fresh only
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