Refer to the original data; The ABC received three options from sales manager to improve its profit. The ABC Manufacturing company is to offer a reduction in the selling price per unit by 25%, combined with a $100,000 increase in advertising budget, would increase this years unit sales by 25% and reduction in variable cost per unit by 25%. If the sales manager is right, what would be this years net operating income if his ideas are implemented?

year is given below: Sales (200,000 units) Variable expenses Contribution margin Fixed expenses Total 51.600.000 800,000 800.000 400,000 Required: a. The selline nire