Question: Phillippe Inc. manufactures A and B from a joint process (cost = $81,000). Six thousand pounds of A can be sold at split-off for $19

Phillippe Inc. manufactures A and B from a joint process (cost = $81,000). Six thousand pounds of A can be sold at split-off for $19 per pound or processed further at an additional cost of $21,000 and then sold for $24 per pound. If Phillippe decides to process A beyond the split-off point, operating income will:

Multiple Choice

increase by $15,000.

increase by $33,000.

decrease by $15,000.

decrease by $33,000.

increase by $9,000.

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