Style Company sells luggage sets for $200 each. its variable costs include $80 of manufacturing costs and $10 for selling costs. In 2022, the company sold 2,000 luggage sets. Its fixed costs depend on the number of sets produced and sold, as shown in the following table:

a. Determine operating income for 2022.

b. What is the maximum amount of profit that can be generated?

c. What other internal and external information would you want to know?

Transcribed Image Text:

Relevant Range of Units Total Fixed Costs 0-3,000 sets 3,001-6,000 sets 6,001-10,000 sets $120,000 $260,000 $400,000