International Data Systems' information on revenue and costs is relevant only up to a sales volume of 114,000 units. After 114,000 units, the market becomes saturated and the price per unit falls from $14.00 to $8.80. Also, there are cost overruns at a production volume of over 114,000 units, and variable cost per unit goes up from $7.00 to $7.25. Fixed costs remain the same at $64,000.

a. Compute operating income at 114,000 units.

b. Compute operating income at 214,000 units.