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Answer (C) is correct . To maximize profits, it must be determined whether each product’s incremental revenues will exceed its incremental costs. Joint costs are irrelevant ? because they are sunk costs. A B C Unit sales price if processed further $5.00 $4.00 $3.75 Minus:??unit sales price at split-off (4.00) (2.25) (3.00) Incremental revenue per unit $1.00 $1.75 $? .75 Minus:??incremental unit cost (.75) (1.20) (.90) Excess unit revenue over unit cost $ ?.25 $ ?.55 $?(.15)

Answer (A) is incorrect because N-Air should further process products A and B and sell product C at split-off.
Answer (B) is incorrect because N-Air should further process products A and B and sell product C at split-off.
Answer (D) is incorrect because N-Air should further process products A and B and sell product C at split-off.