Laser Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 6,000 units.

Current Projected

Demand 40,000 units 34,000 units

Selling price $4.50 $5.00

Incremental cost per unit $3.00 $3.00

If the price increase is implemented, operating profit is projected to:

A) increase by $8,000

B) decrease by $8,000

C) increase by $12,000

D) decrease by $9,000