Test Company produces two products from a common input: Product A and Product B. One batch of the common input yields 600 units of Product A and 200 units of Product B. The joint costs for one batch are $25,000. Product A can be sold at the split-off point for $80 per unit. Product B can be sold at the split-off point for $150 per unit. Alternatively, Product B can be processed into 120 units of Product C that will sell for $400 per unit. Additional process costs for one batch of Product C will be $5,500.

Determine the increase (decrease) in income if Product B is processed further into Product C.

overhead costs are avoidable if Test Company discontinues production of the component.

Determine the total relevant cost of producing the component.

Note: Give your answer using dollar signs and commas but not decimal points (cents). Give negative numbers in parentheses.

Example: $12,345 or $(12,345)