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sarah963 sarah963
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5 years ago
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$5.50
Direct manufacturing labor$1.15
Manufacturing overhead$0.85
Selling costs$2.50
Annual fixed costs$125,000

What is the operating income earned if the company sells 15,000 units?
A) $162,750
B) $150,000
C) $148,500
D) $152,500
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wrote...
#1
5 years ago
 D
Explanation:  D) Contribution = $28.5 - $5.50  $1.15  $0.85 - $2.50 = $18.50  15,000 = $277,500
Operating income = $277,500 - $125,000 = $152,500
sarah963 Author
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#2
5 years ago
White Checkmark Will marking this solved...
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