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A joint production process at Specialty Jams Farm results in two products, cherry jelly and cherry jam. The following cost and activity data relate to

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A joint production process at Specialty Jams Farm results in two products, cherry jelly and cherry jam. The following cost and activity data relate to these two products Cherry jelly Cherry jam Joint costs allocated $10,000 $12,000 Number of units produced from joint process 2,300 2,300 Selling price at split-off point Selling price after processing further $2.80 $5.40 $1.75 $2.00 Cost of processing further $2,500 $2,000 Cherry jelly can be sold as is at the split-off point) for $2 80 per unit, or it can be processed further into a specially cherry smoothie and then sold for $5.40 per unit. If cherry jelly is processed further into the specialty cherry smoothie, what would be the overall effect on operating income? OA. $3,480 net decrease in operating income OB. $6,440 net increase in operating income OC. $3,480 net increase in operating income OD. $6,440 net decrease in operating income

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