The Coffee Distribution Company Charges $1,200 to Distribute Coffee to Customers.The

The Coffee Distribution Company charges $1,200 to distribute coffee to customers.The managers at the company expect competitors to reduce prices to $1,025.The managers at the Coffee Distribution Company decide to remain competitive and reduce the cost of their coffee by 20%.
Required:
Compute the new cost the Coffee Distribution Company will charge based on the 20% price reduction.As a result of the cost reduction,should the managerial accountants at the Coffee Distribution forecast an increase or a decrease in annual sales per unit?

A) $900;decrease
B) $925;increase
C) $960;increase
D) $985;decrease
E) $1,025;decrease