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  3. the silver center (tsc) produces cups and platters

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that...

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Accounting

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $56,000 of materials cost and $60,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing costs amounts to $6,000. The recent batch contained 12,000 platters and 5,000 cups. TSC sold the platters for $180,000 and the cups for $28,000. Assume number of units is used as the base to allocate the joint cost. Based on this information:

Note: Round intermediate calculation to 2 decimal places.

Multiple Choice:

the Company's total income will decrease by $28,000 if it stops making and selling cups.

the Company's total income will increase by $12,100 if it stops making and selling cups.

the Company's total income will increase by 6,100 if it stops making and selling cups.

the Company's total income will decrease by $22,000 if it stops making and selling cups.

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