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Tom makes products Alpha and Delta from a joint process. Alpha has been allocated $7,500 of...

Tom makes products Alpha and Delta from a joint process. Alpha has been allocated $7,500 of total joint costs of $30,000 for the 1,500 units produced. Alpha can be sold at the splitoff point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit. If Alpha is processed further and sold, instead of being sold at the split-off point, how would operating income be affected? In other words, which yields a higher operating income—selling at split-off or processing further? By how much?

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