Question: Phillippe manufactures A and B from a joint process (cost = $80,000). Ten thousand pounds of B can be sold at split-off for $15 per

Phillippe manufactures A and B from a joint process (cost = $80,000). Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $20,000 and later sold for $16. If Phillippe decides to process B beyond the split-off point, operating income will:

A. increase by $20,000

B. decrease by $10,000

C. increase by $10,000

D. decrease by $20,000

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