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[CLO-3] Frazer Corp sells several products, totalling 10,000 units, in the current financial year. Information of average revenue and costs is as follows: Selling price

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[CLO-3] Frazer Corp sells several products, totalling 10,000 units, in the current financial year. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: $5.50 $1.15 Direct material Direct manufacturing labor Manufacturing overhead Selling costs Annual fixed costs $0.85 $2.50 $125,000 If the company decides to lower its selling price by 12.25%, the operating income is reduced by

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