Gwyneth Inc. currently has a contribution margin of

$ 22

on its only product and sells

42,000

units. Gwyneth Inc. is considering cutting its sales price by

$ 3

to generate an increase in sales of

12,000

units. How will this change affect its operating income?

A.It will decrease operating income by

$126,000.

B.It will increase operating income by

$102,000.

C.It will decrease operating income by

$102,000.

D.It will increase operating income by

$126,000.