Business, 19.07.2021 15:30 keke6361

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,000 units, the market becomes saturated and the price per unit falls from $10.00 to $6.80. Also, there are cost overruns at a production volume of over 121,000 units, and variable cost per unit goes up from $5.00 to $5.25. Fixed costs remain the same at $71,000. Required:
a. Compute operating income at 121,000 units.
b. Compute operating income at 221,000 units.

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