Question-5 The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit. Consider each case separately: Required: 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 $0.03 per unit increase in variable costs 3. A 12% increase in fixed costs and a 10% increase in units sold 4. A 18% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Compute the new breakeven point in units for each of the following changes: 4. A 10% increase in fixed costs 5. A 10% increase in selling price and a $20,000 increase in fixed costs