1. Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 2 percent per year. If a given store has current annual materials handling costs of $200,000 and expected an increase next year due to 15 percent growth, the budget for next year would be:

   	A.	$230,000
   	B.	$216,000
   	C.	$196,000
   	D.	$225,400