Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) :
A retailer operating a network of home improvement stores has annual sales of $800 million,
annual cost of goods and materials purchased of $500 million,and net income of $125 million.
-If a newly implemented strategic sourcing process is able to reduce the cost of goods and materials purchased by 15 percent,what would be the new net profit,given that annual sales and other costs remain unchanged?

A) $150 million
B) $175 million
C) $200 million
D) $250 million