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ments Lane Company currently manufactures canned cherry filling that the Company sells to various grocery stores and retailers. At the current level of output, the
ments Lane Company currently manufactures canned cherry filling that the Company sells to various grocery stores and retailers. At the current level of output, the Company generates $52,000 in sales revenue and incurs $23,000 in manufacturing costs. Management is currently considering whether it would be more profitable to manufacture the cherry filling further and instead produce cherry pies. Management believes that if the cherry filling is processed further, the Company will generate $102,000 in sales revenue from the sale of the pies and incur additional processing costs of $67,000. If the Company decides to process the cherry filling further into pies, what is the impact on the Company's operating income relative to selling the cherry filling as-is? O $6,000 increase to operating income O $17,000 decrease to operating income O $35,000 increase to operating income O $40,000 decrease to operating income
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