Find out the operating income


Question: Phillippe Incorporated manufactures A and B from a joint process (cost = $83000). Six thousand pounds of A can be sold at split-off for $21 per pound or processed further at an additional cost of $22,000 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 $14,000. increase by $43,000. decrease by $14,000. decrease by $43,000. increase by $8,000

 

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Accounting Basics: Find out the operating income
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