Lucy, the director of Division H, has full autonomy to make decisions involving better management of the colts and investments. The following data is for Division H's forecast for the year 2022: Average active balance: $600,000 Total fixed cost: $250,000

Variable cost per unit: $20

Sales volume: 25,000 units

Sales price per unit: $35 The company requires a minimum rate of return of 8%. They will promote Lucy if Division H has a residual net income (RNR) of $100,000 in 2022. If Lucy wants to be promoted, what should she do to the total fixed cost of his Division H?

No answer is appropriate reduce it by $100,000 reduce it by $250,000 keep it the same reduce it by $20,000