10.6 A company produces two products, E and F, in batches of 100 units. The production and cost data are:

The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product.

What is the differential profit from producing product E instead of product F for the year?

A. $216,000 B. $204,000 C. $12,000 D. $54,000