Cherry jelly can be sold as - is (at the split - off point) for $2.50 per unit, or it can be processed further into a specialty cherry smoothie and then sold for $5.00 per unit. If cherry jelly is processed further into the specialty cherry smoothie, what would be the overall effect on operating income?

A) $5,000 net increase in operating income

B) $2,800 net decrease in operating income

C) $5,000 net decrease in operating income

D) $2,800 net increase in operating income

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