1. The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $40,000 of materials cost and $44,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing cost amount to $2,000. The recent batch contained 4,000 platters and 1,000 cups. TSC sold the platters for $100,000 and the cups for $12,000. Assume number of units is used as the base to allocate the joint cost. Based on this information

the Company's total income will decrease by $12,000 if it stops making and selling cups.

the Company's total income will increase by$6,800 if it stops making and selling cups.

the Company's total income will increase by 4,800 if it stops making and selling cups.

the Company's total income will decrease by $10,000 if it stops making and selling cups.

1a. If relative market value is used to allocate the joint cost, what is the income earned for cups?