Birney Company is planning its advertising campaign for 19X1 and has prepared the following budget data based on a zero advertising expenditure: pg25

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Normal plant capacity Sales Selling price 200,000 units 150.000 units $25.00 per unit Variable manufacturing costs $15.00 per unit $800.000 Fixed costs: Manufacturing Selling and administrative $700.000 An advertising agency claims that an aggressive advertising campaign would enable Birney to increase its unit sales by 20%. What is the maximum amount that Birney can pay for advertising and obtain an operating profit of $200,0002 a $100.000 b $200.000 C $300,000 d $550.000