Autry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicals dac and tyl. One batch of 5,000 gallons of dactylyte can be converted to 2,000 gallons of dac and 3,000 gallons of tyl at a total joint processing cost of P12,000. At the split-off point, dac can be sold for P3 per gallon and tyl can be sold for P4 per gallon. Autry has just learned of a new process to convert dac into prodac. The new process costs P4,000 and yields 1,700 gallons of prodac for every 2,000 gallons of dac. Prodac sells for P5 per gallon. Should Autry process dac further?*

A) No, income will be P1,500 lower.

B) No, income will be P5,000 lower.

C) Yes, income will be P1,500 higher.

D) Yes, income will be P5,000 higher.

E) It doesn't matter; income will be the same.