24 Arrow .kahanoperation mandelaares thwe "hemicals (TN40. Nuss-and nKUI "om "joit Pusu The a d om at the split-off point. They can eithar be sold at that point or processed " as follows ts releed to each batch of this chemical process $3,000 Sales value at split-off point Allocaled joint costs Sales value afler further processing Cost of farther processing $12,000 56,000$6,000 $6,000 $20,000$18,000 9,000 $5,000 $3,000 $2,000 516,000 Far which produces) above would it be more profitable for more profitable for Arrow to sell after further processing rather than at the to split-off point? A. TM40 only B NJSS only C BK13 only All of them NJSS and BK13 too 25 Two years ago, B. Bernanke started a company to manufacture and sell speciaty socks. Below are her selected actual operating results for the first two years of operations (her cost structure and Year I and Year 2). She allocates her fixed manufacturing overhead costs year selling prices were the same in to the number of units produced in each Units Units sold 31,00 34,000 28,00 ing net operating incoms (NOI) S 44,000 S 35,O Fixed selling& admin, expense What was the net operating income under absorption costing for Year 2? A. $35,000 B. $44,000 C $56,000 D. $65,000 E. None of the above Page 14 of 14