The European Electronics Company has 3 divisions. The following budgeted data is available.

GermanItalianSwedenSales2,500 units2,500 units2,500 unitsSelling price80 per unit85 per unit90 per unitVariable expense35 per unit40 per unit38 per unitFixed expense37,50040,00050,000

Italian Division: If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, operating profit will be:

Multiple Choice

• 107,500
• 102,000
• 94,000
• 91,750