Question: Dockery Company makes two products from a common input. Joint processing costs total $24,000 per year, and are allocated to the products based on total

Dockery Company makes two products from a common input. Joint processing costs total $24,000 per year, and are allocated to the products based on total sales values at the split-off point. Below is information for the two products: Product A Product B Total Allocated joint costs $9,600 $14,400 $24,000 Sales value at the split-off point 12.000 18.000 30.000 Costs of further processing 7,250 8.250 15,500 Sales value after further processing 24.450 27,850 52,300 The effect on the company's operating income if it chooses to process Product A further and then sell it rather than sell Product A at the split-off point would be a(n): increase of $7,600 increase of $17.200 increase of $12.450 increase of $5,200 decrease of $4.400

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