Company Z is thinking of reducing it's selling price by $$10$ per unit from its current unit price of $$89.$ The price reduction is forecast to increase sales by $4628$ units per month from its current level of $9230$ units per month. Variable costs of $$43$ per unit will remain unchanged as will fixed costs.

The net effect on monthly operating income of the above proposal will be:

$($$$89,608)$

$$74,308$

$($$$74,308)$

$$89,608$