$3-19$ CVP Computations. The Chorus Company manufactures and sells pens. Present sales output is $5,000,000$ units per year at a selling price of $$0\mathrm{.}60$ per unit. Fixed costs are $$1,080,000$ per year. Variable costs are $$0\mathrm{.}36$ per unit.

Required

$($Consider each case separately.$)$

a$.$ What is the present operating income for a year?

b$.$ What is the present breakeven point in revenue?

Compute the new operating income for each of the following independent changes:

a$.$ A $$0\mathrm{.}048$ per unit increase in variable costs

b$.$ A $10\%$ increase in fixed costs and a $10\%$ increase in units sold

c$.$ 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

Compute the new breakeven point in units for each of the following changes:

a$.$ A $10\%$ increase in fixed costs

b$.$ A $10\%$ increase in selling price and a $$24,000$ increase in fixed costs