Liliac Company sells a single product. The selling price of the product is $300 per unit. Variable cost is $180 per unit. Fixed cost is $360,000 per period. Currently, the company is selling 5,000 units of the product. Liliac's current operating leverage is 2.5.

Suppose the company's sales units are expected to increase by 20% (or by $300,000), next period. By how much will the profit increase?

	A.	$120,000
	B.	$300,000
	C.	10%
	D.	20%