Len Corporation buys cedar logs. It removes the bark and cuts each log into cedar planks. It can sell each plank for $30. The cost to produce each plank is $7. LenCorporation has the opportunity to use these planks to make cedar canoes. It takes 10 cedar planks to make one cedar canoe and requires an additional $800 in production costs. A cedar canoe can be sold for $1,200. The differential cost of making one cedar canoe is $_______?

Choose from the following

A. 800 B. 870 C. 330 D. 900

Based on the analysis, Len Corporation should (A. process planks into canoes or B. sell the planks). If Len processes the planks into canoes, its overall income will (A. Increase or B. Decrease) by $____?____ per canoe.