A joint production process at Happy Days Farms results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products:
-------------Blackberry syrup/Blackberry jam
Joint costs allocated->$10,000/$12,000
# of units produced from joint process->1,700/1,700
Selling price at split-off point->$2.6/$1.75
Selling price after processing further->$5.1/$2.00
Cost of processing further->$2,100/$2,100
Blackberry syrup can be sold as - is (at the split - off point) for $2.6 per unit, or it can be process further into a specialty blackberry juice and then sold for $5.1 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
A. $4,420 net decrease in operating income
B. $2,150 net increase in operating income
C. $2,150 net decrease in operating income
D. $4,420 net increase in operating income