CVP analysis. (CMA, adapted) Galaxy Disk’s projected operating income for 2008 is

$240,000, based on a sales volume of 200,000 units. Galaxy sells disks for $19.20 each. Variable costs consist ofthe $12 purchase price and a $2.40 shipping and handling cost. Galaxy’s annual fixed costs are $720,000.

100 CHAPTER 3 Required 1. Calculate Galaxy’s breakeven point in units.

2. Calculate the company’s operating income in 2008 if there is a 10% increase in projected unit sales.

3. For 2009, management expects that the unit purchase price of the disks will increase by 30%. Calculate the sales revenue Galaxy must generate in 2009 to maintain the current year’s operating income if the selling price remains unchanged.