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

Multiple Choice

Frazer Corp sells several products.Information of average revenue and costs is as follows: $\begin{array}{lr}\text { Selling price per unit } & \$ 28.50 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 5.50 \\\text { Direct manufacturing labor } & \$ 1.15 \\\text { Manufacturing overhead } & \$ 0.85 \\\text { Selling costs } & \$ 2.50 \\\text { Annual fixed costs } & \$ 125,000\end{array}$ What is the operating income earned if the company sells 15,000 units?

A) $162,750
B) $150,000
C) $148,500
D) $152,500