Jarman Company manufactures a variety of toys and games. Liz Jarman, president, is disappointed in the sales of a new board game. The game sold only 10,000 units in 2013 when 30,000 were projected. Sales for 2014 look no better. At $100 per game, it is not a hot seller. Direct costs of the board game are $56 variable cost and $100,000 fixed. Joan is considering several options. Option One: Cut the price to $70 and perhaps sell 15,000 units. Option Two: Cut the price to $60, reduce material costs by $10, and cut advertising by $60,000. Anticipated volume for this option is 10,000 units. Option Three: Cut the price to $85 and include a $10 mail-in rebate offer. It is anticipated that 12,000 units could be sold and only 40 percent of the rebate coupons would be redeemed. What is the profit (loss) from Option Three? a. $200,000 b. ($48,000) c. $30,000 d. $1,020,000