Question: Lido manufactures A and B from a joint process ( cost = $ 9 4 , 0 0 0 ) . Five thousand pounds of

Lido manufactures A and B from a joint process (cost = $94,000). Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $25. Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $40,000 and later sold for $17. If Lido decides to process B beyond the split-off point, operating income will decrease by:

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