Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Boca Inc.'s current product selling price is $70, variable cost per unit is $35, total fixed costs are $1,430,000, and sales volume is 150,000 units.
-The company estimates that a $10 reduction in selling price and an $80,000 increase in advertising will cause sales volume to increase by 20,000 units. What is the incremental profit or loss?

A) $1,080,000 profit
B) $1,080,000 loss
C) $2,740,000 loss
D) $2,740,000 profit
E) None of the above