Served Inc. manufactures two products, salad plates and platters, from a joint process. Salad plates are allocated $7,500

of the total joint costs of $29,000. There are 3,100

salad plates produced and 3,100 platters produced each year. Salad plates can be sold at the

split minusoff point for $14.00

per unit, or they can be hand painted for additional processing costs of $8,600 and sold for $21.00

for each deluxe salad plate. If the salad plates are processed further and made into deluxe plates, the effect on operating income would be

A.

$13,100

net decrease in operating income.

B.

$13,100

net increase in operating income.

C.

$43,400

net increase in operating income.

D.

$43,400

net decrease in operating income.