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and sells pens. Currently, 5,400,000 units are sold per year at $0.50 per Requirements 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 20% increase in fixed costs and a 20% increase in units sold 4. A 40% decrease in fixed costs, a 40% decrease in selling price, a 10% decrease in variable cost per unit, and a 35% increase in units sold Compute the new breakeven point in units for each of the following changes: 5. A 20% increase in fixed costs 6. A 20% increase in selling price and a $10,000 increase in fixed costs Print Done 0% decrease in selling price, a 10% decrease in variable cost per unit, and a 35% increase in ting of e Text Pages Get More Help Clear All otv A here The Westover Company manutuctures and sellspent. Currently, 5.400.000 units are sold per year at $0 50 per ont. Fedcontoorn 51.140,000 per year. Variable costs are $0.20 per un Read the girement Units Bongo Vana le cout Operating income The current operating income 480.000 Frect: b) What is the current breakeven point in revenus? Determine the formula to calculate the breakeven point in reven Breakevents Selling price Breakeven revenues enalty The current bronseven point in revenues gut! $ 1.000.000 stions Compute the raw opgrating income for requirements through 4. tid (2/2 Requirement 2 002/24 $0.00 per un increase invariable con results in a new operating 00.000) (0/2) Requirement A 20% increase fond conts and a 20% increase in untis sold results in a new operating come of $57.000 Requirement A con decat in twed cost 40% decrease in sedinte, 10% decrease in variable cont per unit, and a 35% increase in units sold in a new operating los ol S