Frazer Corp Sells Several Products If the Company Decides to Lower Its Selling Price by Is

question 62

Multiple Choice

Frazer Corp sells several products.Information of average revenue and costs is as follows: $\begin{array}{lr}\text { Selling price per unit } & \$ 28.50 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 5.50 \\\text { Direct manufacturing labor } & \$ 1.15 \\\text { Manufacturing overhead } & \$ 0.85 \\\text { Selling costs } & \$ 2.50 \\\text { Annual fixed costs } & \$ 125,000\end{array}$
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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Definitions:

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing an individual to express their thoughts and feelings in a respectful manner.

Warmth

The quality or state of being pleasantly hot or comfortable in temperature.

Touch

The sensation or act of coming into contact with something, typically referring to human sensory experience.

Aggressiveness

The quality of being boldly assertive or forward, sometimes resulting in hostile or violent behavior.