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.
-What is the new profit margin with a 15-percent reduction in the cost of goods and materials purchased,assuming sales and other costs remain unchanged?

A) 10%
B) 15%
C) 20%
D) 25%