During a typical week, ShopIt sells 1,200 pounds of a food item unprepared (raw) for $4.99 per pound. The variable cost of the unprepared (raw) product is $2.40 per pound. ShopIt is considering whether to cook the product and sell it in its deli department for $11.99 per pound. The variable cost to cook the 1,200 pounds of food in the deli is $5,856 total. Fixed costs are not affected. If ShopIt cooks the raw product it will lose 10% of the product per week in the preparation process.

a) Calculate the increase or decrease in ShopIt's net income if it cooks the product and sells it in the deli for $11.99 per pound. b) Calculate the cooked (prepared) food price per pound that would eliminate any advantage for selling the cooked product in the deli.