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A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to
A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products (Click the icon to view the data.) Blackberry syrup can be sold as -is (at the split off point) for $2.90 per unit, or it can be processed further into a specialty blackberry juice and then sold for S5.50 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income? OA. $5,220 net increase in operating income 0 B. $5,220 net decrease in operating income C. $2,380 net increase in operating income O D. $2,380 net decrease in operating income Data Table Blackberry syrup Blackberry jam 10,000 1,800 $2.90 $12,000 1,800 $1.75 Joint costs allocated Number of units produced from joint process Selling price at split -off point Selling price after processing further $5.50 S2.00 Cost of processing further $2,300 $2,300
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