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Break-Even in Units, Target Income, New Unit Variable Cost, Degree of Operating Leverage, Percent Change in Operating Incorne per unit, Currently, Reagan produses and sells 20,000 Tuff-Pups annually. Required: 1. How many Tulf-Pups must be sold to break even? units 2. If Reajan wants to earn $66,000 in profit, how marry Tulf-Pugs must be sold? units Fiecoud Foneckin Work Prepare a variable-costing income statement to verify your answer. 2. If Reagan wants to earn $66,000 in profit, how many Tuff-Pups must be sold? units Feedback Check My Work Prepare a variable-costing income statement to verify your answer. 3. Suppose thut Reagan would the to lower the break-even units to 9,600, The company does not believe that the price or foxed cost can be changed. Calculate the new unit. variable cost that would result in beak-even units of 0,600 . If required, roand your intermediate computations and final answer to the nearest cent. \$ 4. What is fieagan's current contribution margin and operateng income? Calculate the degreet of operating leverage. Round wour answer to three decimal places. If sales increased by 10 percent next year, what would the percent change in operatng income be? Use your rounded answer to the question above in your computations, and round your final percentage answer to two decimal places (for example, 45.555% woult be entered as "45.56") \%h. What would the new total operating income for next year be? Round your answer to the nearest dollar. 1 analysas will help Reagan understand the broak even point and uras needed to earn a target profe