. An analyst predicts that if a company’s technological developments are a success, the company’s operating costs will be reduced by 15%. As a result of the reduction in costs, the company will reduce the average selling price of its products by 5% and the volume of sales will increase by 8%. The company’s current gross profit margin is 40%. If technological developments occur, the company’s gross profit margin will be closest to:

A. 44.8%.

B. 46.3%.

C. 47.5%.