Question 14 (2 points) (Use the following data needed to achieve the required net profit (BT), to answer this question.) What is the relationship of total variable costs to earnings for Option B? 20X4 BUDGET AMOUNT EARNINGS $1,200,000 VARIABLE COST $1,080,000 FIXED OPERATING EXPENSE $100,000 NET PROFIT $20,000 PERCENT 100 90 OTHER DATA: 2. 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