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Arsenic Company sells a single product at $205 per unit. The most recent income statement...

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Accounting

Arsenic Company sells a single product at $205 per unit. The most recent income statement revealed unit sales of 2,100, variable costs per unit of $55, and fixed costs of $130,000. Management believes that a 20% drop in selling price will boost sales by 20%. If this reduction in selling price is implemented,
Group of answer choices
Operating income will decrease by $40,320.
Operating income will decrease by $86,100.
Operating income will decrease by $126,180.
Operating income will increase by $40,320.

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