Question: Dockery Company makes two products from a common input. Joint processing costs total $48,000 per year, and are allocated to the products on the basis

Dockery Company makes two products from a common input. Joint processing costs total $48,000 per year, and are allocated to the products on the basis of total sales values at the split-off point. Below is information for the two products:

Product X Product Y Total

Allocated joint costs $19,200 $28,800 $48,000

Sales value at the split off point 24,000 36,000 60,000

Costs of further processing 24,500 16,500 41,000

Sales value after further processing 48,900 55,700 104,600

The effect on the companys operating income if it chooses to process Product Y further and then sell it rather than sell Product Y at the split-off point would be an:

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