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Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling...

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Accounting

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Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $35.00 Variable costs per unit Direct material $7.00 Direct manufacturing labor $1.00 Manufacturing overhead $0.90 Selling costs $2.70 Annual fixed costs $135,000 If the company decides to lower its selling price by 15%, but continues to sell 17.000 units, the operating income is reduced by O A. $89,250 OB. $127,800 OC. $135,000 OD. $17,000

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