A company makes a product that sells for $80 per unit Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $2,080,000 1,040,000 1,040,000 160,000 $ 880,000 The company president wants to add new features to the product, which will increase the variable expenses by $2.30 per unit. She thinks that the new features, combined with some increase in marketing spending, would increase this year's sales by 25%. How much could the president increase this year's fixed marketing expense and still earn the same $880,000 net operating income as last year? Multiple Choice $277,875 $333,450 $148,200 $185,250