Marsden manufactures a cat food product called Special Export. Marsden currently has 20,000 bags of Special Export on hand. The variable production costs per bag are $1.9 and total fixed costs are $20,000. The cat food can be sold as it is for $9.1 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $3,600 cost. The additional processing will yield 20,000 bags of Prime Cat Food and 5,400 bags of Feline Surprise, which can be sold for $8.1 and $6.1 per bag, respectively.

If Special Export is processed further into Prime Cat Food and Feline Surprise, the total gross profit would be:

$198,540

$191,340

$194,940

$153,340

$133,340