Question

Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $6.00 Direct manufacturing labor $1.45 Manufacturing overhead $0.85 Selling costs $2.50 Annual fixed costs $135,000If the company decides to lower its selling price by 14.25%, but continues to sell 16,000 units, the operating income is reduced by ________. $64,960 $135,000 $13,200 $16,000

Answer 1

Answer:

$186,980

Explanation:

the operating income is reduced by $186,980