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 $1.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9.00 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,000 cost. The additional processing will yield 10,000 bags of Prime Cat Food and 3,000 bags of Feline Surprise, which can be sold for $8 and $6 per bag, respectively.

The net advantage (incremental income) of processing Special Export further into Prime and Feline Surprise would be

a. $98,000.

b. $96,000.

c. $ 8,000.

d. $ 6,000.

e. $ 2,000.