Ostrowski and Smith Plastics (O&S) produce three less popular action figures for Marvel's Avengers product line: Ant-Man, Nebula, and Rocket. Based upon expected sales, O&S develops the following income statement: Ant Man Nebula Rocket Total $ $ Sales value after processing Costs incurred AFTER split-off Net processing revenue Joint costs Expected Net Income 500,000 $ 175,000 $ 325,000 5 450,000 $ 150,000 $ 300,000 $ $ 350,000 $ 1,300,000 100,000 $ 425,000 250,000 $ 875,000 5 680,000 $ 195,000 O&S purchases 160,000 pounds (lbs.) of plastic pellets for $3.00 per lb. In production, each action figure uses the following amounts of Pliable Plastic: Ant-Man = 80,000 lbs., Nebula = 50,000 lbs., and Rocket = 30,000 lbs. The pellets are used to produce the Pliable Plastic used to produce the action figures. Instead of making action figures, O&S could instead sell the Pliable Plastic for $5.00 per pound. Compute the change in expected net income if O&S produces only products that remain profitable after split- off. O Income increases $50,000 O Income increases $65,000 Income increases $75,000 Income increases $80,000 o None of the other answers are correct DEC 3,465