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International data systems information on revenue

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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.

Reference no: EM132528084

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