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International Data Systems information on revenue and costs is relevant only up to a sales volume of 125000 units After 125000 units the market becomes saturated and the price per unit falls from

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 125,000 units. After 125,000 units, the market becomes saturated and the price per unit falls from $18.00 to $10.80. Also, there are cost overruns at a production volume of over 125,000 units, and variable cost per unit goes up from $9.00 to $9.50. Fixed costs remain the same at $75,000. a. Compute operating income at 125,000 units. b. Compute operating income at 225,000 units.

 

Apr 03 2020 View more View Less

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