Frazer Corp Sells Several Products What Is the Operating Income Earned If the Company Sells

question 164

Multiple Choice

Frazer Corp sells several products.Information of average revenue and costs is as follows:
$\begin{array}{ll}\text { Selling price per unit } & \$ 28.5 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 6.00 \\\text { Direct manufacturing labor } & \$ 1.45 \\\quad \text { Manufacturing overhead } & \$ 0.85 \\\quad \text { Selling costs } & \$ 2.60 \\\text { Annual fixed costs } & \$ 125,000\end{array}$
What is the operating income earned if the company sells 20,000 units?

• A)$279,000
• B)$296,000
• C)$325,000
• D)$227,000

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