Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks. The company is considering processing these backpacks further to produce hiking backpacks. A summary of the expected costs and revenues for both of these options follows: Ordinary Backpacks Hiking Backpacks Activity Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $8,000 If the company can sell 8.000 units of either product, what is the expected incremental profit or loss from processing the backpacks further? $72.000 $65.000 ($15.000 $20,000