5.) The Dream Company manufactures and sells phones. Currently 5,000,000 phones are sold per year at $.50 per phone. Fixed costs are $900,000 per year and variable costs are $.30 per phone

Required: Please consider each separately

a. What is the present operating income per year?

b. What is the present breakeven point?

c. Compute the new breakeven point if there is a $.04 per phone increase in variable costs

d. Compute the new breakeven point if there is a 10% increase in fixed costs