International Data Systems' information on revenue and costs is relevant only up to a sales volume of units. After units, the market becomes saturated and the price per unit falls from $ to $ Also, there are cost overruns at a production volume of over units, and variable cost per unit goes up from $ to $ Fixed costs remain the same at $
a Compute operating income at units.
Operating income
b Compute operating income at units.
Operating income
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $ The separate capital structures for Sterling and Royal are shown here:
tableRoyalDebt @ $Debt @$
