Data for Capitol Suppliers are shown below:

	Total
Sales (1,500 units)	$750,000
Less Variable Costs	$540,000
Contribution Margin	$210,000
Less Fixed Costs	$150,000
Net Operating Income	$ 60,000

The company sells Whiteboard sets to Government and Private schools. Management is considering reducing the selling price by 11%. This will cause a 15% increase in sales.

Which one of the following would be the net operating income if the changes were made?

Select one:

A.

$22,500

B.

$9,300

C.

$75,000

D.

($3,375)