Question 20 Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $30.00 Variable costs per unit: Direct material $5.50 Direct manufacturing labor $1.25 Manufacturing overhead $0.95 Selling costs $3.00 Annual fixed costs $130,000 If the company sells 17,000 units and decides to lower its selling price by 14.25%, the operating income is reduced by $72,760 $17,000 $68,100 $130,000