Argon Chemical Company manufactures a chemical com¬ pound that is sold for $29 per gallon. A new variant of the chemical has been discov¬ ered, and if the basic compound were processed into the new variant, the selling price would be $36 per gallon. Argon expects the market for the new compound variant to be 5,000 gallons initially and determines that processing costs to refine the basic com¬ pound into the new variant would be $40,000.

Required:

Should Argon produce the new compound variant? Explain your answer.