Upscale Dishwear manufactures two products, salad plates and platters, from a joint process. Salad plates are allocated $7,500 of the total joint costs of $25,000. There are 3,000 salad plates produced and 3,000 platters produced each year. Salad plates can be sold at the

splitminusoff

point for $12 per unit, or they can be hand painted for additional processing costs of $8,400 and sold for $16 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.

$36,000 net decrease in operating income.

B.

$3,600 net decrease in operating income.

C.

$3,600 net increase in operating income.

D.

$36,000 net increase in operating income.