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Boatsail manufactures two products as part of a joint process: GRADULATED PEANUT and CHOPPED PEANUT. Joint costs up to the split-off point total $180,000, and

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Boatsail manufactures two products as part of a joint process: GRADULATED PEANUT and CHOPPED PEANUT. Joint costs up to the split-off point total $180,000, and are allocated to each line of product in proportion to its relative sales value. At the split-off point, product GRADULATED PEANUT can be sold for $160,000, and CHOPPED PEANUT can be sold for $40,000. At an incremental cost of $50,000, GRADULATED PEANUT can be processed into GRADULATED PEANUT-2 and sold for $200,000. At an incremental cost of $40,000, CHOPPED PEANUT can be processed into CHOPPED PEANUT-2 and sold for $90,500. a b Joint costs allocated to product GRADULATED PEANUT total: $_ Joint costs allocated to product CHOPPED PEANUT total: $_ The net change in operating income resulting from a decision to manufacture GRADULATED PEANUT-2 is (specify whether the change is an increase or a decrease): $

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