Business, 13.03.2020 02:17 jayleneeurich

Posh Pillows manufactures two products, pillows and cushions, from a joint process. Pillows are allocated $ 7,100 of the total joint costs of $ 30,000. There are 2,900 pillows produced and 2,900 cushions produced each year. Pillows can be sold at the splitminusoff point for $ 11 per unit, or they can be processed further into a deluxe pillow for additional processing costs of $8,300 and sold for $21 for each deluxe pillow. If the pillows are processed further and made into deluxe pillows, the effect on operating income would be:

a. $23.600 net decrease in operating income
b. $29,000 net decrease in operating income
c. $29,000 net increase in operating income
d. $23,600 net increase in operating income

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Posh Pillows manufactures two products, pillows and cushions, from a joint process. Pillows are allo...