Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit Variable costs per unit: Direct material Direct manufacturing labor Manufacturing overhead Selling costs Annual fixed costs $30.00 OA. $130,000 OB. $59,200 O C. $16,000 OD. $58,880 $5.50 $1.00 $0.85 $2.70 $130,000 If the company decides to lower its selling price by 12.25%, but continues to sell 16,000 units, the operating income is reduced by

Frazer Corp sells several products. Information of average revenue and costs is as follows: If the company decides to lower its selling price by 12.25%, but continues to sell 16,000 units, the operating income is reduced by A. $130,000 B. $59,200 C. $16,000 D. $58,880