(Incremental earnings from lowering product prices) Apple's (AAPL) iPad jump started the touchscreen computer market to levels few analysts had ever dreamed possible. Moreover, the popularity of the iPad pushed Apple's competitors to offer similar touchscreen computers. Hewlett Packard offered its Slate product and others soon followed suit. One such manufacturer was Soko Industries. The Soko product, the sPad, had a number of appealing features but the relative obscurity of the company did not help product sales. In fact, the sPad was initially sold for $650, and disappointing sales led Soko Industries management to consider taking a 25 percent price break on its sPad, which costs $400 to manufacture and sell.

A. If Soko goes through with the price adjustment and it leads to total sales of 300,000 sPads, the incremental revenues attributable to the new pricing strategy is (Select the best choice below.)

a. $75,000,000

b. $146,400,000

c. $26,400,000

d. $195,000,000

B. "By including the $80 in additional operating profits from applications, we also need to include: 300,000 units x $80 = $24,000,000. Thus, the incremental revenues of the project attributable to the new pricing strategy should be $50,400,000."

Is the statement above correct?