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Hi, can you show how to answer this question using cost-volume-profit analysis (CVP) Troy Manufacturing...

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Accounting

Hi, can you show how to answer this question using cost-volume-profit analysis (CVP) Troy Manufacturing produces a single product that sells for $100. Variable costs per unit equal $35. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 2,600 units. In an attempt to improve performance, management is considering a 16% reduction in selling price that it believes will result in a 16% increase in sales. If this proposed reduction in selling price is implemented _____

a) Operating income will decrease by $21,216

b) Operating income will increase by $20,384

c) Operating income will increase by $21,216

d) Operating income will decrease by $41,600

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