Answer:
The correct option is C) a variable production cost incurred after split off.
Explanation:
First of all it is important to understand what sell or process further decision is , this is a situation where a company has to decide whether they should sell their product right now or they should make some further changes in to it , which can help them earn more revenue.
Company's make such decisions by doing an incremental analysis where they see whether the additional revenues they think product will generate when it would be further processed will be more than the additional cost they would have to incurred in further processing the product.
So at this point only variable production cost which they would have to incurred would matter not the fixed cost because of the incremental revenue and cost are the only significant factors here for decision making.
