Marsden manufactures a cat food product called Special Export. Marsden currently has 10,000 bags of Special Export on hand. The variable production costs per bag are $3.10 and total fixed costs are $10,000. The cat food can be sold as it is for $8.45 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,700 cost. The additional processing will yield 10,000 bags of Prime Cat Food and 3,700 bags of Feline Surprise, which can be sold for $7.45 and $5.45 per bag, respectively. If Special Export is processed further into Prime Cat Food and Feline Surprise, the total gross profit would be:

$91,965.

$97,365.

$60,965.

$50,965.

$94,665