Jackson Chemical Corporation produces a water-based pest control chemical which it sells to pest control companies to manufacture as a pesticide. In 2020, the company incurred $140,000 of costs to produce 14,000 kilograms of the chemical. The selling price of the chemical is $21.00 per kilogram. The costs per unit to manufacture a kilogram of the chemical are presented below:

Direct materials: $ 3.50

Direct labour: $3.00

Variable manufacturing overhead: $2.00

Fixed manufacturing overhead: $1.50

Total manufacturing costs: $10.00

The company is considering manufacturing the pesticide itself. If the company processes the chemical further and manufactures the pesticide itself, the following additional costs per kilogram will be incurred: Direct materials $1.00, direct labour $.25, variable manufacturing overhead, $1.00. No increase in fixed manufacturing overhead is expected. The company can sell the pesticide at $25.00 per kilogram.

Determine the incremental per kilogram increase in net income and the total increase in net income if the company manufactures the pesticide.