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Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $ 29.00 Variable costs per unit: Direct
Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $ 29.00 Variable costs per unit: Direct material $ 5.50 Direct manufacturing labor $ 1.00 Manufacturing overhead $ 0.95 Selling costs $ 3.00 Annual fixed costs $ 130 comma 000 If the company decides to lower its selling price by 12.25%, but continues to sell 18 comma 000 units, the operating income is reduced by ________. A. $ 63, 900 B. $ 130,000 C. $ 18,000 D. $ 73,900
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