d. Thad is worried about the selling price. Rumors are circulating that other retro brands...

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Accounting

d. Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $10,600 to compete effectively. In that event, Thad also would reduce fixed expenses to $1,408,500 by reducing advertising expenses, but he still hopes to sell 500 units per year.
What would the net operating income be in this situation?
Note: Negative amount should be indicated by a minus sign.

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