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1 b ) The Unique Toys Company is a toy manufacturer. Currently, it sells 3 0 0 , 0 0 0 units per year @$

1 b) The Unique Toys Company is a toy manufacturer. Currently, it sells 300,000 units per year @$12.50 per unit. The variable costs are $7 per unit and Fixed Costs are $880,000. Calculate the following:
a) Net Operating Income
b) Breakeven point in Revenues
Calculate the new Operating Income under the following scenarios:
a)10% increase in variable costs
b) $250,000 increase in Fixed Costs
c)10% decrease in Selling Price and 10% increase in variable costs.

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