PotteryWorks Company sold 60,000 units of product for $22 per unit. Their unit product cost using process costing is $11 per unit and the company has fixed costs of $240,000 per month. The company predicts that a $2 decrease in the selling price will generate a 20% increase in sales during the next period. If the company lowers the price which of the following will occur in the next period?

Answer. Net income will decrease by $12,000.

Please show me how to get the answer above.