Samy, director of division B has all the autonomy to make decisions involving better management of costs and investments. The following data is for Division B forecast for the year 2022: Average active balance: $600,000 Total fixed cost: $250,000 Unit variable cost: $20 Sales volume: 25,000 units Unit selling price: $35 The company requires a minimum rate of return of 8%. She will promote Samy if Division B has a Residual Net Income (RNR) of $100,000 in 2022. If Samy desires his promotion, what should he do at the total fixed cost of his Division B ?

a-reduce it by $20,000

b-reduce it by $250,000

c-No answer fits

d-reduce it by $100,000

e-keep it unchanged