Next year, CPC Inc. expects to sell 50,000 units of its only product and has prepared the following budgeted income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income $1,250,000 750,000 500,000 300,000 $200,000 The company is considering the use of higher quality direct materials, which would increase direct material cost from $6 per unit to $8 per unit. If this change were made without changing the selling price, it is believed that unit sales would increase by 10%. If this occurred, net operating income would be: a. $100,000 b. $210,000 c. $170,000. d. $140,000