Tony Manufacturing produces a single product that sells for $90. Variable costs per unit equal $45. The company expects total fixed costs to be $85,000 for the next month at the projected sales level of 2,900 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a 16% reduction in the selling price will result in a 16% increase in sales. If this proposed reduction in selling price is implemented O A. operating income will increase by $14,198 O B. operating income will decrease by $41,760 O C. operating income will decrease by $27,562 OD. operating income will increase by $27,562