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Author Question: Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling ... (Read 104 times)

ghost!

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Frazer 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 labor$1.45
Manufacturing overhead$0.85
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 ________.
◦ $64,960
◦ $135,000
◦ $13,200
◦ $16,000


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Marked as best answer by ghost! on Mar 6, 2021

moormoney

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ghost!

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Reply 2 on: Mar 6, 2021
Wow, this really help


triiciiaa

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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