Gold Company reported the following:

		TOTAL		PER UNIT
Sales (20,000 units)	$	800,000	$	40
Variable expenses		560,000		28
Contribution margin	$	240,000	$	12
Fixed expenses		120,000
Net operating income	$	120,000

If Gold decreased its variable expenses by $3 per unit and increased its selling price by $2 per unit, Golds net operating income would be closest to:

$120,000

$220,000

$340,000

$100,000