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 $2.50 and total fixed costs are $10,000. The cat food can be sold as it is for $9.75 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,700 cost. The additional processing will yield 10,000 bags of Premium Green and 3,700 bags of Green Deluxe, which can be sold for $8.75 and $6.75 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be:

$112,475.

$109,775.

$115,175.

$74,775.

$84,775.