Hunter Company sells a single product at $14 per unit. The firm's most recent income statement revealed unit sales of 80,000, variable costs of $800,000, and fixed costs of $560,000. Management believes that a $3 drop in selling price will boost unit sales volume by 20%. What is the amount of net loss after decreasing the selling price (by $3)

Select one:

a.

-220,000

b.

-240,000

c.

-480,000

d.

Since $3 drop in selling price will boost unit sales volume by 20%, the company does not incur a loss.

e.

-464,000