What is the relationship of total variable costs to earnings for Option B?

Question 12 options:

A)

0.9474

B)

0.8371

C)

0.8571

D)

0.9174

20X4 BUDGET AMOUNT PERCENT $1,200,000 100 EARNINGS VARIABLE COST 080.000 90 FIXED OPERATING EXPENSE 100,000 $20,000 NET PROFIT OTHER DATA: 1. Net profit required (BT) $50,000 2. Maximum company market share $1,350,000 3. The market is competitive 4. No advanced project management procedures are applied. Options to obtain the required net profit (BT): Option A: Decrease price by 5% Option B: Increase price by 5% Option C: Decrease fixed costs by $10,000 Option D: Decrease variable cost by 5% of earnings