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Lido manufactures A and B from a joint process (cost = $99,000). Five thousand pounds of A can be sold at split-off for $20 per
Lido manufactures A and B from a joint process (cost = $99,000). Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $25. Ten thousand pounds of B can be sold at split-off for $17 per pound or processed further at an additional cost of $32,000 and later sold for $18. If Lido decides to process B beyond the split-off point, operating income will decrease by:
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