$($Click the icon to view question $1.)$

$($Click the icon to view question $2.)$

Option $1$ operating income:

Option $2$ operating income:

$5$

$5$

$91,200$

Button should choose

Option $2$

$2.$ Callan Corporation manufactures and sells a special kind of ball bearing its cost structure depends on the number of bearings il produces. lts foxed costs and variable manufacturing cost per unit for different ranges of production are described in the following table.$($Click the icon to vie the table$)$

$($a$)$ If Callan sells $2,800$ units, its operating income will be

Question $2$

$\backslash$table$[[\backslash$table$[[2.$ Callan Corporation manufactures and sells a special kind of ball bearing Its$],[$cost structure depends on the number of bearings it produces. Its fixed costs and$],[$variable manufacturing cost per unil for different ranges of production are$],[$described in the following table.$]]],[$Production Range in Units,Fixed Costs,$\backslash$table$[[$Variable Manufacturing$],[$Cost per Unit$]]],[1-3,000$ units produced $$,300,000,72],[3,001-6,000$ units produced $$,400,000,52],[01-10,000,810,000,527]]$

Callan's sales director believes the company can sell $2,800$ unils at a soliling price of $$370$; or $4,300$ units at a price of $$270$; or $6,300$ units at a price of $$220$ If it

chose to sell $6,300$ units, however, it would incur additional advertising costs of $$56\mathrm{.}000$ and variable selfing costs of $$14$ per unit. Should Callan Corporation plan to produce and sell $($a$)2,800$ units $($b$)4,300$ units or $($c$)6,300$ units? $$