Walters manufactures a specialty food. Walters manufactures a specialty food product that can currently be sold for $22.70 per unit and has 20,700 units on hand. Alternatively, it can be further processed at a cost of $12,700 and converted into 12,700 units of Deluxe and 6,700 units of Super. The selling price of Deluxe and Super are $30.70 and $20.70, respectively. The incremental net income of processing further would be:.
a. $40, 000.
b. $12, 000.
c. $44, 000.
d. $18, 000.
e. $28, 000.