CORRECT ANSWER B. PHILLIPS BREAKEVEN VOLUME IS 82,500 UNITS, AN...

198.

Correct answer b. Phillips breakeven volume is 82,500 units, and the company’s anticipated

operating income is $9,250,000 as calculated below.

Breakeven point:

($160 - $60) X

= ($55 x 150,000)

$100X

= $8,250,000

X

= 82,500 units

Operating income

=

[($160 - $60) x 175,000] - $8,250,000

=

$9,250,000