=+2 The pen is usually produced and sold at the rate of 240000 units per year (an average of 20000 per month). The selling price is $6 per unit, which yields total annual revenues of $1440000. Total costs are $1416000 and operating profit is $24000, or $0.10 per unit. Market research estimates that unit sales could be increased by 10% if prices were cut to $5.80. Assuming the implied cost behaviour patterns continue, this action, if taken, would:

a decrease operating profit by $7200