Question: Phillippe Incorporated manufactures A and B from a joint process ( cost = $ 8 7 , 0 0 0 ) . Six thousand pounds

Phillippe Incorporated manufactures A and B from a joint process (cost = $87,000). Six thousand pounds of A can be sold at split-off for $21 per pound or processed further at an additional cost of $27,000 and then sold for $26 per pound. If Phillippe decides to process A beyond the split-off point, operating income will:
Multiple Choice
increase by $9,000.
increase by $39,000.
decrease by $9,000.
decrease by $39,000.
increase by $3,000.

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