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MsCorrine MsCorrine
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Posts: 355
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

If the company decides to lower its selling price by 12.25%, the operating income is reduced by ________.
A) $52,500
B) $50,500
C) $55,500
D) $29,500
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andrew.khimzandrew.khimz
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Posts: 197
5 years ago
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MsCorrine Author
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5 years ago
This helped my grade so much Perfect
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Smart ... Thanks!
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2 hours ago
Thank you, thank you, thank you!
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