Wilson Company prepared the following preliminary budget assuming no advertising expenditures:

Selling price	$10 per unit
Unit sales	100,000
Variable expenses	$600,000
Fixed expenses	$300,000

Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if $100,000 were spent on advertising. If these changes are incorporated in its budget, what should be the budgeted net income?

Group of answer choices

$175,000.

$190,000.

$205,000.

$365,000.