Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $2.60 and total fixed costs are $10,000. The cat food can be sold as it is for $9.85 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,800 cost. The additional processing will yield 10,000 bags of Premium Green and 3,800 bags of Green Deluxe, which can be sold for $8.85 and $6.85 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be:

$114,530.

$111,730.

$75,730.

$85,730.

$117,330.