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Phillippe Inc. manufactures A and B from a joint process (cost = $86,000). Seven thousand pounds of A can be sold at split-off for $17
Phillippe Inc. manufactures A and B from a joint process (cost = $86,000). Seven thousand pounds of A can be sold at split-off for $17 per pound or processed further at an additional cost of $28,000 and then sold for $22 per pound. If Phillippe decides to process A beyond the split-off point, operating income will: Multiple Choice increase by $14,000. increase by $33,000. decrease by $14,000. decrease by $33,000. increase by $7,000.
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