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Read the requirements. Requirement 1 . What is the current annual operating income? ( a ) Start by determining the formula to calculate operating income.

Read the requirements.
Requirement 1. What is the current annual operating income?
(a) Start by determining the formula to calculate operating income. ]=The current annual operating income is
(b) What is the current breakeven point in revenues?
Determine the formula to calculate the breakeven point in revenues.
The current breakeven point in revenues equal
Compute the new operating income for requirements 2 through 4.
Requirement 2.
A $0.08 per unit increase in variable costs results in a new operating
Requirement 3.
A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating
Requirement 4.
A 40% decrease in fixed costs, 40% decrease in selling price, a 30% decrease in variable cost per unit, and a 35% increase in units sold results in a new operating of
Compute the new breakeven point in units for requirements 5 and 6.
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