In the year 20A, the Titanic Company had sales of $19,950,000, with $11,571,000 variable and $7,623,000 fixed

Question:

In the year 20A, the Titanic Company had sales of $19,950,000, with $11,571,000 variable and $7,623,000 fixed costs. 20B sales are expected to decrease 15%, and the cost relationship is expected to remain constant (the fixed costs will not change).
Required:
Determine Titanic Company's expected operating income or loss for the year 20B.