Frazer Corp sells several products. Information of average revenue and costs is as follows:

Selling price per unit $30.00

Variable costs per unit:

Direct material $5.50

Direct manufacturing labor $1.00

Manufacturing overhead $0.85

Selling costs $2.70

Annual fixed costs $135,000

If the company sells 18,000 units and decides to lower its selling price by 14.25%, the operating income is reduced by