CVP exercises. (20 minutes) Grinberg Lehrmittelverlag GmbH manufactures and sells pens. Present sales output is 5,000,000 annually at a selling price of DM 0.50 per unit. Fixed costs are DM 900,000 per year.

Variable costs are DM 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:

A DM 0.04 per unit increase in variable costs A 10% increase in fixed costs and a 10% increase in units sold 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:

A 10% increase in fixed costs A 10% increase in selling price and a DM 20,000 increase in fixed costs,  lop1