Lido Products produces two products (A and B) from a joint process. The joint cost of production is $80 000. Five thousand units of Product A can be sold at split-off for $20 per unit or processed further at an additional cost of $20 000 and sold for $25 per unit. Ten thousand units of Product B can be sold at split-off for $15 per unit or processed further at an additional cost of $20 000 and sold for $16 per unit. What is the difference in profit if Lido decides to process further Product A, instead of selling it at split-off?

Select one:

a. $27 000 decrease

b. $21 000 increase

c. $25 000 increase

d. $5000 increase