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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

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?
Increase of $200,000
Decrease of $400,000
Decrease of $200,000
No change

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