Question: Phillippe manufactures A and B from a joint process (cost = $93,000). Eleven thousand three hundred pounds of B can be sold at split-off for

Phillippe manufactures A and B from a joint process (cost = $93,000). Eleven thousand three hundred pounds of B can be sold at split-off for $16 per pound or processed further at an additional cost of $10,000 and later sold for $18. If Phillippe decides to process B beyond the split-off point, operating income will:

A. increase by $12,600.

B. increase by $35,200.

C. decrease by $12,600.

D. decrease by $35,200

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