12) Pioche Company is considering selling a "premium" version of one of its products. The following information is available. The "additional processing costs" are the costs needed to transform the units from "standard" to "premium."

Number of units produced 100,000

Selling price of "standard" units $10 per unit

Additional processing costs $900,000

Selling price of "premium" units $15 per unit

Before any additional processing costs, the total production cost for the 100,000 units is $700,000. What will be the change in Pioche Company's net income if the company decides to sell a "premium" version of this product?

• Decrease of $400,000
• Increase of $100,000
• Decrease of $200,000
• Increase of $200,000
• No change