The answer is A - increases by $180,000 but I dont know how they got this answer. Please show all work and explain concept.

10. [CPA Adapted] Mohler Corporation manufactures a product that yields the byproduct Jep. The only costs associated with Jep are selling costs of $0.10 for each unit sold. Mohler accounts for sales of Jep by deducting Jep's separable costs from Jep's sales and then deducting this net amount from the major product's cost of goods sold. Jep's sales were 200,000 units at $1.00 each. If Mohler changes its method of accounting for Jep's sales by showing the net amount as additional sales revenue, the Mohler's gross margin would increase by $180,000. increase by $200,000. increase by $220,000. be unaffected. o ooo