Gateway manufactures 21,000 computers per year. Demand is flat so its expected production levels to remain consistent year over year. The full manufacturing costs per computer are as follows:

Direct materials	$ 500
Direct labor	100
Variable manufacturing overhead	58
Variable Selling & Administrative	2
Average fixed manufacturing overhead	26
Total	$686

Gateways Product Group team has proposed to produce the computers in bright colors. This further processing will add $15 to the total cost but selling price would improve to $899. What should Gateway do?

Group of answer choices

Manufacture the computers in bright colors as it will result in a net profit of $2

Manufacture the computers as is as further processing will result in a net loss of $4

Manufacture the computers as is as further processing will result in a net loss of $2

Manufacture the computers in bright colors as it will result in a net profit of $4