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

Phillippe Incorporated manufactures A and B from a joint process (cost =$80,000). 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 per pound. If Phillippe decides to process A beyond the split-off point, operating income will:
Multiple Choice
increase by $10,000.
increase by $20,000.
decrease by $10,000.
decrease by $20,000.
increase by $5,000.
Phillippe Incorporated manufactures A and B from

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