International Data Systems’ information on revenue and costs is relevant only up to a sales volume of 112,000 units. After 112,000 units, the market becomes saturated and the price per unit falls from $10.00 to $6.80. Also, there are cost overruns at a production volume of over 112,000 units, and variable cost per unit goes up from $5.00 to $5.50. Fixed costs remain the same …
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