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The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable

The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit.

3.

A 10% increase in fixed costs and a 10% increase in units sold

4.

A 20% decrease in fixed costs, a 20% decrease in selling price, a 30% decrease in variable cost per unit, and a 35% increase in units sold

Compute the new operating income for each of the following changes:

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 $10,000 increase in fixed costs

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