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Khemikhale Ltd is exploring producing new products during a new joint process. One of the products, product PLM can be sold at R 6 0

Khemikhale Ltd is exploring producing new products during a new joint process. One of the products, product PLM can be sold at R60 per litre at split-off point, alternatively, product PLM can be further processed into product PLL at a cost of R40 per litre. Product PLL can be sold at R90 per litre. No increase or decrease in volume occurs during the further processing of product PLM into product PLL and Khemikhale is expected to produce 30000 litres of PLL. The joint costs allocated to product PLM is R500000.
Which of the following statements is correct with respect to the further processing of product PLM into product PLL:
Select one:
a.
The further processing of product PLM into product PLL will increase profits by R200000.
b.
The further processing of product PLM into product PLL will decrease profits by R300000.
c.
The further processing of product PLM into product PLL will increase profits by R300000.
d.
The fu

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