Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.Sheltar's TV currently sells small televisions for $180.It has costs of $140.A competitor is bringing a new small television to market that will sell for $150.Management believes it must lower the price to $150 to compete in the market for small televisions.Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market.Sheltar's sales are currently 100,000 televisions per year.
-What is the change in operating income if marketing is correct and only the sales price is changed?

A) $125,000
B) $950,000
C) $(3,450,000)
D) $(2,900,000)
E) $2,350,000)