The sales department tells management that they can increase revenue by 20 per

The sales department tells management that they can increase revenue by 20 percent by increasing sales 20 percent but the production department says that to
achieve that number of units they will have to buy a new piece of equipment that will add $200000 to the appropriate category. What happens when we enter
those changes into our model? (Enter a new number in Enter Units that reflects a 20 percent increase in chairs sold. Increase Manufacturing Machinery to allow
for the new purchase.) Clearly a 20 percent increase in sales will increase revenue 20 percent but what happens to profits?

a. Profits decrease 25 percent.

b. Profits increase 41 percent.

c. Profits decrease 41 percent.

d. Profits do not change.