A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products: Blackberry syrup can be sold as-is (at the split-off point)for $2.90 per unit, or it can be processed further into a specialty blackberry juice and then sold for $5.50 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
A)$2380 net increase in operating income
B)$2380 net decrease in operating income
C)$5220 net increase in operating income
D)$5220 net decrease in operating income

Question

A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products:  Blackberry syrup can be sold as-is (at the split-off point)for $2.90 per unit, or it can be processed further into a specialty blackberry juice and then sold for $5.50 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
A)$2380 net increase in operating income 
B)$2380 net decrease in operating income 
C)$5220 net increase in operating income 
D)$5220 net decrease in operating income

Quizplus · Accepted Answer

The Answer of A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products:  Blackberry syrup can be sold as-is (at the split-off point)for $2.90 per unit, or it can be processed further into a specialty blackberry juice and then sold for $5.50 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
A)$2380 net increase in operating income 
B)$2380 net decrease in operating income 
C)$5220 net increase in operating income 
D)$5220 net decrease in operating income

A Joint Production Process at Berry Lane Farm Results in Two