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A small business produces a single product and reports the following data: Sales price $8.50 per unit Variable cost $5.30 per unit Fixed cost $22,000

A small business produces a single product and reports the following data: Sales price $8.50 per unit Variable cost $5.30 per unit Fixed cost $22,000 per month Volume 10,500 units per month The company believes that the volume will go up to 11,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? Answer: It will decrease by $9,400 ****please show your work****

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