A chemical company spent$532,000 toproduce150,000 gallons of a chemical that can be sold for$4.80 per gallon. This chemical can be further processed into a weed killer that can be sold for$9.20 per gallon. It will cost$270,000 to process the chemical into the weed killer. Which of the following istrue?

A.

If the company decides to processfurther, it will increase operating income by$390,000.

B.

To maximize operatingincome, the company should continue to sell the chemical as is.

C.

If the company decides to processfurther, it will decrease operating income by$1,380,000.

D.

If the company decides to processfurther, it will increase operating income by$578,000.