Preston Inc. manufactures G and T from a joint process (cost = $81,000). Five thousand...
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Preston Inc. manufactures G and T from a joint process (cost = $81,000). Five thousand pounds of G can be sold at split-off for $20 per pound or processed further at an additional cost of $23,000 and then sold for $25 per pound. If Preston decides to process G beyond the split-off point, operating income will:
Multiple Choice
increase by $7,000.
increase by $19,000.
increase by $2,000.
decrease by $7,000.
decrease by $19,000.
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