Zippy Gonzalez Scooters currently sells a single model of scooter for $270. It has costs of $230. A competitor is bringing a new competing scooter to market that will sell for $245. Management believes it must lower the price to $245 to compete in the market for scooters. Marketing manager believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Zippy Gonzalez's sales are currently 5200 scooters per year.

Details:

Calculate the change in operating income if the marketing manager is correct and the sales price is changed.Clearly indicate whether the change is an increase or a decrease. Show all working