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Technical Chemical manufactures two products as part of a joint process: MB and EB. Point costs up to the split-off point total $70,000. At the

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Technical Chemical manufactures two products as part of a joint process: MB and EB. Point costs up to the split-off point total $70,000. At the split-off point, product 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 T 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 EB-2 is (specify whether the change is an increase or a decrease): A $11,500 increase B $11,500 decrease C $1,500 increase D $10,000 decrease Technical Chemical manufactures two products as part of a joint process: MB and EB. Point costs up to the split-off point total $70,000. At the split-off point, product 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 T 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 EB-2 is (specify whether the change is an increase or a decrease): A $11,500 increase B $11,500 decrease C $1,500 increase D $10,000 decrease

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