Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $6.00 Direct manufacturing labor $1.25 Manufacturing overhead $0.85 Selling costs $2.50 Annual fixed costs $125,000 If the company decides to lower its selling price by 15%, but continues to sell 18,000 units, the operating income is reduced by A. $125,000 B. $72,200 C. $77,040 D. $18,000