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5.67 pts Cathy Company makes two products from a common input. Joint processing costs total $36.000 per year and are allocated to the products based
5.67 pts Cathy Company makes two products from a common input. Joint processing costs total $36.000 per year and are allocated to the products based on total sales values at the split-off point. Below is information for the two products: Allocated joint costs Sales value at the split-off point Costs of further processing Sales value after further processing Product X Product Y Total $14,400 $21,600 $36,000 18,000 27,000 45,000 10,875 12,375 23,250 36,675 41,775 78,450 The effect on the company's operating income if it chooses to process Product X further and then sell it, rather than sell Product X at the split-off point, would be a(n): increase of $7.800 O decrease of $6.600. O increase of $18,675 O increase of $25.800 O increase of $2,400
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