Question #4 (6 Marks) Jackson Chemical Corporation produces a pest control chemical called Agent Orange which it sells to companies to manufacture a pesticide. In 2020, the company incurred $140,000 of costs to produce 14,000 kilograms of the chemical. The selling price of the chemical is $21.00 per kilogram. The costs per unit to manufacture a kilogram of the chemical are presented below: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $ 3.50 3.00 2007 1.50 $10.00 The company is considering manufacturing the pesticide itself. If the company processes the chemical further and manufactures the pesticide itself, the following additional costs per kilogram will be incurred: Direct materials $1.00, direct labour $ 25, variable manufacturing overhead, $1.00. No increase in fixed manufacturing overhead is expected. The company can sell the pesticide at $25.00 per kilogram Instructions Determine the incremental per kilogram increase in net income and the total increase in net income if the company manufactures the pesticide