Posh pillows manufactures two products, pillows and cushions, from a joint process. pillows are allocated $7000 of the total joint costs of $30,000. there are 2500 pillows produced and 2500 cushions produced each year. pillows can be sold at the split-off point for $14 per unit, or they can be processed further into a deluxe pillow for additional processing costs of $8500 and sold for $18 for each deluxe pillow. if the pillows are processed further and made into deluxe pillows, the effect on operating income would be

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