Bradley Exterminator Corporation produces chemicals for the bug spray industry. The company produced 3,000 gallons of Chemical X for a total cost of $2,000. The 3,000 gallons of Chemical x can be sold for a total of $2,500, or can be processed further into ChemicalY. If the company decides to process Chemical X into Chemical Y, they will lose 600 gallons of it in the process. The sales value of Chemical Y is $4.50 per gallon, and the additional processing cost is $8,100.

What would be the effect on profitability of processing Chemical X into Chemical Y?

O Profitability would decrease by $2,800

O Profitability would increase by $200

O Profitability would increase by $2,900

O Profitability would increase by $8,300

O None of the above