Requirement 6

E3-25 (book/static) the Doral Company manufactures and sells pers. Currently 5,000,000 units are sold per year at 50 50 per unit. Fixed costs are $900,000 per year Variable costs are $0,30 per Read the girements Requirement 1. What is the current anual operating income? (a) Start by determining the formula to calculate operating income * Selling price Variable costs Fbed costs = Operating income The content anual operating income is $100.000 What is the current even point in rever? Determine the formula to calculate the breakeven point in revenue Brake revenues The current report in revenons Compute these pesting income for requirements through Requirement Etabet in the ones and then check P = =/2 /5 = - H K N M ne Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed cos Bead the requirements loss of A 50.04 per unit increase in variable costs results in a new operating $ (100,000) Requirement 3. A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating income of $ 110,000 Requirement 4. A 20% decrease in fixed costs, 20% decrease in seling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold results in a new operating income of $ 190,000 Compute the new breakeven point in units for requirements 5 and 6 Requirement 5. A 10% increase in fixed costs creates a new breakeven point at 4 950 000 units Requirement 6 A 10% increase in selling price and a $20 000 increase in fized costs creates a new breakeven point at units Enter any number in the edit fields and then click Check Answer All parts showing Clear A H Search here o a 2 $ 2 96 3 5 & 6 7 00 I w E R T