Arsenic Company sells a single product at $$205$ per unit. The most recent income statement revealed unit sales of $2,100,$ variable costs per unit of $$55,$ and fixed costs of $$130,000.$ Management believes that a $20\%$ drop in selling price will boost sales by $20\%.$ If this reduction in selling price is implemented,

Group of answer choices

Operating income will decrease by $$40,320.$

Operating income will decrease by $$86,100.$

Operating income will decrease by $$126,180.$

Operating income will increase by $$40,320.$