202140-ACG-4341-01Z-40151-Cost Accounting Nicole DiNatale : = Homework: Ch 3 Hwk Question 10, E3-25 (simil... Part 1 of 9 HW Score: 74.36%, 74.36 of 100 points Score: 18.75 of 20 Save The McKnight Company manufactures and sells pens. Currently, 5,100,000 units are sold per year at $0.50 per unit. Fixed costs are $1,170,000 per year. Variable costs are $0.20 per unit. Read the requirements - X Requirements Requirement 1. What is the current annual operating income? (a) Start by determining the formula to calculate operating income. Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.10 per unit increase in variable costs 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 30% decrease in fixed costs, a 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 40% increase in units sold Compute 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 $20,000 increase in fixed costs Print Done Choose from any drop-down list and then click Check Answer. Help Me Solve This e Text Pages Get More Help Clear All Check