Question: Oregon Hardwoods produces multiple products from a shared production process, including wood shavings and wood veneer. Up to the split - off point for these

Oregon Hardwoods produces multiple products from a shared production process, including wood shavings and wood veneer. Up to the split-off point for these two products, the joint costs associated with their shared processes total $12 million per year. Wood shavings can be sold for $15 million in annual revenue, and wood veneer can be sold for $20 million in annual revenue. Wood shavings can be processed further into pellets at a cost of $6 million, which can then be sold for $35 million. Wood veneer can be processed further into paneling at a cost of $7 million, which can then be sold for $32 million. 1. The amount by which operating income will increase if wood shavings are processed further into wood pellets is $____ million. 2. The amount by which operating income will increase if wood veneer is processed further into paneling is $___ million.

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