Pioche Company is considering selling a premium version of one of its products. The following information is available. The additional processing costs are the costs needed to transform the units from standard to premium.

Number of units produced 100,000

Selling price of standard units $10 per unit

Additional processing costs $500,000

Selling price of premium units $17 per unit

Before any additional processing costs, the total production cost for the 100,000 units is $900,000. What will be the change in Pioche Companys net income if the company decides to sell a premium version of this product?

Decrease of $400,000

Increase of $200,000

No change

Decrease of $200,000

Increase of $100,000