Brendan and Sofia are competing oil change businesses located in near Acadia National Park. Both companies have 2,000 customers. The price of an oil change at both companies is $19. Brendan pays its employees on a salary basis, and its salary expense is $16,000. Sofia pays its employees $8 per customer served. Suppose Brendan is able to lure 1,100 customers from Sofia by lowering its price to $17 per vehicle. Thus, Brendan will have 3,100 customers and Sofia will have only 900 customers.

Select the correct statement from the following.

Multiple Choice

• Sofia's profit will fall but it will still earn a higher profit than Brendan.

• Brendan's profit will remain the same while Sofia's profit will decrease.

• Profits will decline for both Brendan Change and Sofia Change.

• Brandan's profit will increase while Sofia's profit will fall.