lben, usersityOr Mrdtp-Cengage A Wet Assign Excelsior College Log In Iuberty Uni
ID: 2814461 • Letter: L
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lben, usersityOr Mrdtp-Cengage A Wet Assign Excelsior College Log In Iuberty Univr twed Apply for educat or yur Benefehdr 4 Question 22 (of 25) Save &Ext Submt Time romaining: 149.39 2. internatonal Data Systems nformation on revenue and costs is reievant only up to a saes votume of 16.000 units Aner 116,000 unes, the manket becomes satuated and the prce per unit tails trom $18 00 to 510 80 Aiso, mere are cost overruns at a production same at s66 000 n volume of over 116,000 unts and variable cost per unit goes up rom 39.00 10 $9 50 Fixed costs remain the a. Compute operating income at 116.000 uns Operaing ncome b Compure cpersing income at 215.000 ns ngomeExplanation / Answer
Solution:
a) Calculation of the Operating Income at 116,000 Units:
Therefore, the Operating Income at 116,000 Units is $978,000.
b) Calculation of the Operating Income at 215,000 Units:
Therefore, the Operating Income at 215,000 Units is $214,000.
INTERNATIONAL DATA SYSTEMS Sales (116,000 × $18.00) $2,088,000 Total variable costs (116,000 × $9.00) $1,044,000 Fixed costs $66,000 Operating income $978,000Related Questions
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