Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material Direct manufacturing labor Manufacturing overhead Selling costs Annual fixed costs $6.00 $1.45 $0.90 $3.00 $125,000 If the company decides to lower its selling price by 14.25%, but continues to sell 15,000 units, the operating income is reduced by A. $60,900 B. $125,000 C. $15,000 D. $7,250