Our company produces a product that is currently sold for $70 per unit. We are considering processing it further into an upgraded version of the current product. If we do so, we can sell the product for $90, we will incur additional costs of $395,000, and we can sell 20,000 units.

Which of the following is true?

Group of answer choices

Sell now at $70 since doing so will maximize operating income.

Process further because operating income will increase by $5,000.

Process further because operating income will increase by $7,500.

Process further because operating income will increase by $8,000.