Competency4.1 Mark Johnson is controller for a Pharmaceutical company. During the companys midyear review, Johnson notes that the companys Research and Development expenditures are already $3.0 billion, nearly 40% above the midyear target.In a meeting with the CFO later that day, Johnsons delivers the bad news to the CFO, Pauline Stewart. Stewart was shocked and outraged that the R&D spending had gotten out of control. Stewart wasnt any more understanding when Johnson revealed that the excess cost was entirely related to research and development of a new drug, Lucexx, which was expected to go to market next year. The new drug would result in large profits for the company, if the product could be approved by year-end. Johnson came up with the following idea for making the third-quarter budgeted targets:Stop all research and development expense on the drug Lucexx until after year-end. This change would delay the drug going to market by at least 6 months. It is certain that in the meantime a competitor could make it to market with a similar drug. The results on the company of this action is:(2.5 point) A.An increase in both short-term and long-term profits B.An increase in short-term profits and a decrease in long-term profits C.A decrease in short-term profits and an increase in long term profits D.A decrease in both short-term and long-term profits