Phillippe Manufactures a and B from a Joint Process (Cost

question 74

Multiple Choice

Phillippe manufactures A and B from a joint process (cost = $80,000) . Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $20,000 and later sold for $16. If Phillippe decides to process B beyond the split-off point, operating income will:

• A) increase by $10,000.
• B) increase by $20,000.
• C) decrease by $10,000.
• D) decrease by $20,000.
• E) decrease by $58,000.

---

Definitions:

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields, including copyrights, patents, and trademarks.

Collective

A group or system that works together as a whole, often implying shared responsibilities or activities.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Electronic Junk Mail

Unsolicited and unwanted emails, often sent in bulk for advertising purposes.