Lido manufactures A and B from a joint process (cost = $85,000). 5,000 pounds of A can be sold at split-off for $23 per pound or processed further at an additional cost of $21,000 and then sold for $28 per pound. If Lido decides to process A beyond the split-off point, operating income will:

Multiple Choice

• increase by $30,000.
• increase by $9,000.
• increase by $4,000.
• decrease by $30,000.
• decrease by $9,000.