Score: 0 of 7 pts 4 of 14 (3 complete) HW Score: 11.54%, 11.54 of 100.. E3-25 (similar to) Question Help The Westover Company manufactures and sells pens. Currently, 5,400,000 units are sold per year at $0.50 per unit. Fixed costs are $1,170,000 per year. Variable costs are $0.20 per unit. Read the requirements. Requirement 1 What is the current annual onerating income (a) Start i Requirements Operating income Consider each case separately: 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$0.10 per unit increase in variable costs 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 30% decrease in fixed costs, a 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 45% increase in units sold Compute the new breakeven point in units for each of the following changes: 5. A 10% increase in fixed costs 6. A 10% increase in selling price and a $20,000 increase in fixed costs Print Done Choose from any drop-down list and then click Check Answer Q parts Clear All Check Answer O remaining If the contribution margin ratio is 0.40, targeted operating income is SM