Orange Paper Company processes wood pulp into two products. During February the joint costs of processing were $156,000. Production and sales value information for the month were as follows:

Sales Value at

Product Kilograms Produced splitoff Point Separable Costs

Paper 180,000 $30,000 $232,000

Cardboard 132,000 20,000 277,000

Paper sells for $2.85 a kilogram and cardboard sells for $3.90 a kilogram.

There were no beginning inventories for April but ending inventories totalled 15,000 kilograms for paper and 18,000 kilograms for cardboard.

What will be the total incremental benefit or (loss) from all potential sales of processing the cardboard beyond the splitoff point?

A. $237,800

B. $217,800

C. $257,800

D. $277,000

E. $311,000