Please give a detailed solution process
The Mommon Company manufactures and sols pens. Currently. 5,400,000 units are sold per year at $0.50 per unit. Fixed costs are $910,000 per year. Variable costs are 30,30 per unit Read the requirements Requirement 1. What is the current annual operating income? (a) Start by determining the formula to calculate operating income. Units sold x Selling price Variable costs Fixed costs - Operating income - The current annual operating income is $ 170,000 (b) What is the current breakeven point in revenues? Determine the formula to calculate the breakeven point in revenues Breakeven units Selling price Breakeven revenues The current breakeven point in revenues equals 2.275,000 Compute the new operating income for requirements 2 through 4. Requirement 2. A 50.05 per unit increase in variable co Requirements Requirements A 10% increase in foxed costs and a 10 Consider each case separately Requirement 4. 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues A 30% decrease in food costs, 30% de Compute the new operating income for each of the following changes: units sold results in a new operating 2. A$0.05 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 35% increase in units sold Compute the new breakeven point in units for each of the following changes: A 10% Increase in fixed costs A 10% increase in seling price and a $10,000 increase in fixed costs Print Done The Morrison Company manufactures and tells pens. Currently. 5,400,000 units are sold per your at $0.50 per unit. Feed costs are 8910,000 per year. Variable costs are $0.30 per unit Read the requirements Variable costs Fixed costs Breakeven revenues Requirement 1. What is the current annuut operating income? (a) Start by determining the formula to calculate operating income. Un sold Selling price - Operating Income The current annual operating income la 170,000 (b) What is the current breakeven point in revenues? Determine the formula to calculate the breakeven point in revenues. Breakeven unha Selling price The current breakeven point in revenues equus 2,275,000 Compute the now operating income for requirements 2 through 4 Requirement 2 A80.00 per unit increase in variable costs results in a new operating (100.000) Requirementa. A 10% ricrease in fixed costs and a 10% increase in untis sold results in a new operating 187.000 Requirement 4 A 30% decrease in fixed costs, 30% decrease in veiling prion, a 20% decrease in variable cost per unit, and a 35% increase in unts sold results in a new operating Income of loss of $ income of 5
