Marsden manufactures a cat food product called Special Export. Marsden currently has 15,000 bags of Special Export on hand. The variable production costs per bag are $1.7 and total fixed costs are $15,000. The cat food can be sold as it is for $9.2 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $3,100 cost. The additional processing will yield 15,000 bags of Prime Cat Food and 4,650 bags of Feline Surprise, which can be sold for $8.2 and $6.2 per bag, respectively.

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