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 $15\%$ per month. The company will pay a sales commission instead to its Sales staff which will increase variable cost per unit by $$25.$

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

Question $18$Select one:

A$.$

$$55,000$

B$.$

$$17,500$

C$.$

$$12,500$

D$.$

$$15,000$