Elephant Books sells paperback books for $7 each. The variable cost per book is $5. At current annual sales of 200,000 books, the publisher is just breaking even. It is estimated that if the authors' royalties are reduced, the variable cost per book will drop from $5 to $2.25. Assume authors' royalties are reduced and sales remain constant; how much more money can the publisher put into advertising (a fixed cost) and still reach a break even?

• A. $450,000
• B. $550,000
• C. $200,000
• D. $160,000
• E. $333,333