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Jaguar Manufacturing produces and sells pencils. Currently, 5,000,000 pencils are sold per year at $1.50 each Fixed costs are $950,000 per year. Variable costs per
Jaguar Manufacturing produces and sells pencils. Currently, 5,000,000 pencils are sold per year at $1.50 each Fixed costs are $950,000 per year. Variable costs per unit equal $0.6 per pencil. Required: 1.(a) What is the current annual operating income? [3 points] (b) What is the current breakeven point in revenues? [4 points) 2. Compute the operating income and breakeven point in revenues for the following independent cases: (a) A 10% increase in fixed costs. [5 points) (b) A 10% increase in the selling price per pencil and a $20,000 increase in fixed costs. [7 points) W
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