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 comma 4002,400	2 comma 4002,400
Selling price at splitminusoff point	$ 2.70$2.70	$1.75
Selling price after processing further	$ 5.50$5.50	$2.00
Cost of processing further	$ 2 comma 200$2,200	$2,000

Cherry jelly can be sold asminusis (at the splitminusoff point) for $2.70 per unit, or it can be processed further into a specialty cherry smoothie and then sold for $5.50

per unit. If cherry jelly is processed further into the specialty cherry smoothie, what would be the overall effect on operating income?

A.$6,480 net increase in operating income

B.$4,520 net increase in operating income

C.$4,520 net decrease in operating income

D.$6,480 net decrease in operating income