Question: Phillippe Inc. manufactures A and B from a joint process (cost = $90,000). Eight thousand pounds of A can be sold at split-off for

Phillippe Inc. manufactures A and B from a joint process (cost =

Phillippe Inc. manufactures A and B from a joint process (cost = $90,000). Eight thousand pounds of A can be sold at split-off for $15 per pound or processed further at an additional cost of $29,000 and then sold for $19 per pound. If Phillippe decides to process A beyond the split-off point, operating income will: decrease by $3,000 increase by $3,000 increase by $11,000 decrease by $30,000

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