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International Data Systems' information on revenue and costs is relevant only up to a sales volume of 120.000 units. After 120.000 units, the market becomes
International Data Systems' information on revenue and costs is relevant only up to a sales volume of 120.000 units. After 120.000 units, the market becomes saturated and the price per unit falls from $8.00 to $5.80. Also, there are cost overruns at a production volume of over 120,000 units, and variable cost per unit goes up from $4.00 to $4.50. Fixed costs remain the same at $70,000. a. Compute operating income at 120,000 units. Operating income b. Compute operating income at 220.000 units. Operating income
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