Answer:
decrease in operating income for $41,250
Explanation:
The computation of the change in the operating income is shown below:
Total order cost is
= 750 frames × $60
= $45,000
And,
Total cost is
= Charging per frame + cost per frame
= $100 + $15
= $115
So, for 750 frames, it is
= $115 × 750 frames
= $86,250
So as we can see that the total order cost is less than the total cost so it would results into decrease in operating income for $41,250 by taking a difference of $86,250 and $45,000