Kobe Company has manufactured 200 partially finished cabinets at a cost of $104,000. These can be sold as is for $124,800. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $25,000, and the finished cabinets could be sold for $166,400. If Kobe Company processes the cabinets further, incremental income is:

• $27,040.

• $79,000.

• $16,600.

• $41,600.

• $62,400.