Graham Corporation has 1,000 cartons of oranges that were harvested at a cost of $29,000. The oranges can be sold as is for $34,160. The oranges can be processed further into orange juice at an additional cost of $12,825 and be sold at a price of $50,550. The incremental income (loss) from processing the oranges into orange juice would be:

• $(16,390).

• $(3,565).

• $37,725.

• $16,390.

• $3,565.