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. Assuming that these changes are incorporated in its budget, what should be the budgeted net income?
a. $175,000
b. $190,000
c. $205,000
d. $365,000