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Lido manufactures A and B from a joint process (cost = $88,000). 5,000 pounds of A can be sold at split-off for $25 per pound
Lido manufactures A and B from a joint process (cost = $88,000). 5,000 pounds of A can be sold at split-off for $25 per pound or processed further at an additional cost of $23,000 and then sold for $30 per pound. If Lido decides to process A beyond the split-off point, operating income will:
decrease by $37,000. | |
decrease by $7,000. | |
increase by $2,000. | |
increase by $37,000. | |
increase by $7,000. |
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