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FallenMan manufactures two products as part of a joint process: FRUIT SNACKS and SNICKERS. Joint costs up to the split-off point total $65,000, and are
FallenMan manufactures two products as part of a joint process: FRUIT SNACKS and SNICKERS. Joint costs up to the split-off point total $65,000, and are allocated to each line of product in proportion to its relative sales value. At the split-off point, product FRUIT SNACKS can be sold for $80,000, and SNICKERS can be sold for $20,000. At an incremental cost of $25,000, FRUIT SNACKS can be processed into FRUIT SNACKS-2 and sold for $100,000. At an incremental cost of $20,000, SNICKERS can be processed into SNICKERS-2 and sold for $47,500. A. Joint costs allocated to product FRUIT SNACKS total: $ Joint costs allocated to product SNICKERS total: $ B. C. The net change in operating income resulting from a decision to manufacture FRUIT SNACKS-2 is (specify whether the change is an increase or a decrease): $ D. The net change in operating income resulting from a decision to manufacture SNICKERS-2 is (specify whether the change is an increase or a decrease): $ E. The net change in operating income resulting from a decision to manufacture both FRUIT SNACKS- 2 and SNICKERS-2 is (specify whether the change is an increase or a decrease): $
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