Question
San Antonio Company produces accounting software. Its unit cost structure, based on an anticipated production volume of 150,000 units, is:sale price is 160, variable costs
San Antonio Company produces accounting software. Its unit cost structure, based on an anticipated production volume of 150,000 units, is:sale price is 160, variable costs is 60 and fixed costs is 55.The marketing department has estimated sales for the coming year at 175,000 units, which is within the relevant range of San Antonio's cost structure. San Antonio's breakeven volume (in units) and anticipated operating income for the coming year would amount to.
a. 82,500 units and $7,875,000 of operating income.
b. 82,500 units and $9,250,000 of operating income.
c. 96,250 units and $3,543,750 of operating income.
c. 96,250 units and $7,875,000 of operating income.
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