Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $30.00 Variable costs per unit: Direct material $5.50 Direct manufacturing labor $1.00 Manufacturing overhead $0.85 Selling costs $2.70 Annual fixed costs $135,000 If the company sells 18,000 units and decides to lower its selling price by 14.25%, the operating income is reduced by: .