Frazer Corp Sells Several Products If the Company Decides to Lower Its Selling Price by Is

Frazer Corp sells several products.Information of average revenue and costs is as follows:
$\begin{array}{ll}\text { Selling price per unit } & \$ 28.50 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 6.00 \\\text { Direct manufacturing labor } & \$ 1.45 \\\quad \text { Manufacturing overhead } & \$ 0.85 \\\quad \text { Selling costs } & \$ 2.50 \\\text { Annual fixed costs } & \$ 135,000\end{array}$
If the company decides to lower its selling price by 14.25%,but continues to sell 16,000 units,the operating income is reduced by ________.

A) $64,960
B) $135,000
C) $13,200
D) $16,000