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International Data Systems' information on revenue and costs is relevant only up to a sales volume of 104,000 units. After 104,000 units, the market


International Data Systems' information on revenue and costs is relevant only up to a sales volume of 104,000 units. After 104,000 units, the market becomes saturated and the price per unit falls from $12.00 to $7.80. Also, there are cost overruns at a production volume of over 104,000 units, and variable cost per unit goes up from $6.00 to $6.50. Fixed costs remain the same at $54.000 a. Compute operating income at 104,000 units. Operating income b. Compute operating income at 204,000 units Operating income

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