A pet store sells around 1,200 pounds of raw food for 4.99 each lb. The variable cost for the raw food is 2.40 per lb. If the food is processed it can be sold for 11.99/ lb. The variable cost to process the food is 1,200 lbs and a total cost of 5,856. Fixed costs do not matter if they process the food it will lose 10% of the food a week just for preparing.

a. what is the increase or decrease of the net income if it processes the food and sells it for 11.99/ lb.

b. What is the processed food processed price per lb that would take away the advantage for selling processed food.