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