Manufactures A and B from a joint process (cost = $80,000). Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $25 per pound. If Lido decides to process A 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. increase by $5,000.
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