International Data Systems' information on revenue and costs is relevant only up to a sales volume of 102,000 units. After 102,000 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 102,000 units, and variable cost per unit goes up from $4.00 to $4.50. Fixed costs remain the same at $52,000.

a.Compute operating income at 102,000 units.

b.Compute operating income at 202,000 units.