Q1: Reynolds Company manufactures & sells pens. Currently 600,000 units are sold per year at $10 per unit. Fixed costs are $ 1,500,000 per year. Variable costs are $ 6 per unit.

1. What is the present operating income for a year. Prepare an income statement.Contribution margin 150,000 7.5 20.00%

2. What is the present break-even point in revenues and in units.