Question: Phillippe manufactures A and B from a joint process (cost = $91,000). Eleven thousand one hundred pounds of B can be sold at split-off for

Phillippe manufactures A and B from a joint process (cost = $91,000). Eleven thousand one hundred pounds of B can be sold at split-off for $11 per pound or processed further at an additional cost of $35,000 and later sold for $12. If Phillippe decides to process B beyond the split-off point, operating income will:

Multiple Choice

increase by $23,900.

increase by $35,000.

decrease by $23,900.

decrease by $35,000.

decrease by $89,117.

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