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Processed further and made into deluxe plates

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Reference no: EM131755239

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
splitminus-off 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.

Reference no: EM131755239

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