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Technical Chemical manufactures two products as part of a joint process. MB and EB, Joint costs up to the split-off point total 70,000. At the
Technical Chemical manufactures two products as part of a joint process. MB and EB, Joint costs up to the split-off point total 70,000. At the split-off point, products MB can be sold for $85,000 and EB can be sold for $25,000. At an incremental cost of $30,000, MB can be processed into MB-2 and sold for $105,000. At an incremental cost of $25,000, EB can be processed into EB-2 and sold for $62,500. The net change in operating income resulting from a decision to manufacture MB-2 is?( specific where the change is an increase or a decrease)
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