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Lido manufactures A and B from a joint process (cost = $86,000). 4,000 pounds of A can be sold at split-off for $27 per pound
Lido manufactures A and B from a joint process (cost = $86,000). 4,000 pounds of A can be sold at split-off for $27 per pound or processed further at an additional cost of $2,000 and then sold for $29 per pound. If Lido decides to process A beyond the split-off point, operating income will:
decrease by $10,000.
increase by $22,000.
increase by $6,000.
increase by $10,000.
decrease by $22,000.
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