Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Frank's Computer Monitors, Inc., currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $225. Management believes it must lower the price to $225 to compete in the market for 17" monitors. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Frank's sales are currently 10,000 monitors per year.
-What is the change in operating income if marketing is correct and only the sales price is changed?

A) $165,000
B) $45,000
C) $(165,000)
D) $(435,000)