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Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000

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Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 units. Suppose that management believes that a 15% reduction in the selling price will result in a 10% increase in number of units sold. If this proposed reduction in selling price is implemented operating income will decrease by: Your answer should NOT include any dollar sign or any commas or any points. FE

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