Operating results for Division A of Alpha Company during 2019 are as follows:

Sales	$480,000
Cost of goods sold	297,600
Gross profit	182,400
Direct expenses	32,400
Common expenses	54,000
Total expenses	86,400
Net income	$96,000

If Division A would maintain the same quantity of product sold while raising selling prices by 12%, increasing direct labor costs by $24,000 and implementing a new marketing campaign at a cost of $12,000, what would be the effect on the Divisions net income? (Ignore income taxes in your calculations.)

Select one:

a. Net income would increase by $24,000

b. Net income would increase by $21,600

c. Net income would increase by $36,000

d. None of these options are correct.

e. Net income would decrease by $21,600