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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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Posts: 4603
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9 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
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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#1
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9 years ago
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jerico Author
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#2
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
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#3
9 years ago
Sweet, you're welcome.
wrote...
#4
3 years ago
thanks
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