Grnberg Lehrmittelverlag GmbH manufactures and sells pens. Present sales output is 5 million annually at a selling

Question:

Grünberg Lehrmittelverlag GmbH manufactures and sells pens. Present sales output is 5 million annually at a selling price of €0.50 per unit. Fixed costs are €900 000 per year. Variable costs are €0.30 per unit.
Required
(Consider each case separately.)
1. a. What is the present operating profit for a year?
b. What is the present breakeven point in revenues?
Calculate the new operating profit for each of the following changes:
2. A €0.04 per unit increase in variable costs.
3. A 10% increase in fixed costs and a 10% increase in units sold.
4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable costs per unit, and a 40% increase in units sold.
Calculate the new breakeven point in units for each of the following changes:
5. A 10% increase in fixed costs.
6. A 10% increase in selling price and a €20000 increase in fixed costs.