The CVPS-511 company makes a product that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows:

Sales	$	2,080,000
Variable expenses		1,040,000
Contribution margin		1,040,000
Fixed expenses		200,000
Net operating income	$	840,000

The company president wants to add new features to the product, which will increase the variable expenses by $2.20 per unit. She thinks that the new features, combined with some increase in marketing spending, would increase this year's sales by 25%. How much could the president increase this year's fixed marketing expense and still earn the same $840,000 net operating income as last year?

Multiple Choice

• $188,500

• $339,300

• $282,750

• $150,800