can you please help with this question?

Thad is worried about the selling peice. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Westem Hombce would have to be reduced to $11,000 to compete effectively, In that event, Thad would also reduce fixed expenses to $189,000 by teducing advertising expenses, but he still hopes to sell 100 units per year. d. What would the net operating income be in thes situation? (Negative amount should be indicated by a minus shan.) Answer is complete but not entirely correct