The Carter Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit.

Lise the following to answer questions 11-12: The Carter Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4 and for B is $3.80 at the split off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit. 11. In a decision between selling B at the splitoff point or processing B further, which of the following items is not relevant: A) the $60,000 cost to process B beyond the split-off point B) the $3.80 unit sales price of B at the splitoff point C) the portion of the $90,000 joint production cost allocated to B D) the $7 unit selling price for B after further processing 12. If product B is processed beyond the splitoff point, the change in operating income from a production run (as compared to selling B at the splitoff point) would be: A) $36,000 increase B) $96,000 increase C) $42,000 decrease D) $10,000 decrease