Jarvis Foods Produces a Gourmet Condiment Which Sells for $10

Jarvis Foods produces a gourmet condiment which sells for $10.00 per unit. Variable costs are $7.50 per unit, and fixed costs are $18,000 per month. Jarvis is currently selling 8,000 units per month. If Jarvis is forced to reduce the selling price down to $9.00 per unit, and volume remains constant, how will that affect its operating income?

A) Operating income will go up by $6,000.
B) Operating income will become a loss of $6,000.
C) Operating income will become a loss of $2,000.
D) Operating income will go up by $2,000.