Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Silicon Technologies, 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 $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Silicon believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Silicon's sales are currently 5,000 monitors per year.
-What is the change in operating income if marketing manager is correct and only the sales price is changed?

A) $200,000
B) $190,000
C) $(190,000)
D) $(200,000)