Clifford 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 unit for different ranges of production are described in the following table:

Clifford's sales director believes the company can sell 2,200 units at a selling price of $360; or 3,700 units at a price of $310; or 6,700 units at a price of $210. If it chose to sell 6,700

units, however, it would incur additional advertising costs of$66,000 and variable selling costs of $4 per unit. Should Clifford Corporation plan to produce and sell (a)2,200units (b)3,700 units or (c)6,700 units?

Production Range in Units	Fixed Costs	Variable Manufacturing Cost per Unit
1-3,000 units produced	$225,000	$72
3,001-6,000 units produced	$355,000	$52
6,001-10,000 units produced	$775,000	$32

Clifford's sales director believes the company can sell 2,200 units at a selling price of $360; or 3,700 units at a price of $310; or 6,700 units at a price of $210. If it chose to sell 6,700

units, however, it would incur additional advertising costs of$66,000 and variable selling costs of $4 per unit. Should Clifford Corporation plan to produce and sell (a)2,200units (b)3,700 units or (c)6,700 units?

(a)	If Clifford sells 2,200 units, its operating income will be