Data for Capitol Suppliers are shown below:

Total

Sales $(1,500$ units$)$

$$750,000$

Less Variable Costs

$$525,000$

Contribution Margin

$$225,000$

Less Fixed Costs

$$200,000$

Net Operating Income

$ $25,000$

The company sells Whiteboard sets to Government and Private schools. Management is considering removing the monthly salaries of its Sales staff, thereby reducing Fixed expenses by $10\%$ per month. The company will pay a sales commission instead to its Sales staff which will increase variable cost per unit by $$20.$

Which one of the following would be the net operating income if the changes were made?

Select one:

$$ A$.$ $$5,000$

$$ B$.$ $$15,000$

$$ C$.$ $$45,000$

D$.$

$$20,000$