Epsilon, Inc.’s data on revenue and costs for a capital project is non-linear. Up to 100,000 units sold, price is $4.00 per unit and variable cost is $2.00 per unit. After 100,000 units, the market becomes saturated and the price per unit falls from $4.00 to $3.50. Also, there are cost overruns at a production volume of over 100,000 units, so that variable cost per unit goes up from $2.00 to $2.20. Fixed costs remain constant at $50,000. Compute operating income at 200,000 units sold. Single choice
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