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

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The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements Requirement 1. What is the current annual operating income (a) Start by determining the formula to calculate operating income. )1 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 # akeven revenues The current breakeven point in revenues equal Compute the new operating income or loss for requirements 2 through 4 Requirement 2 A$0.04 per unit increase in variable costs results in a new operating Requirement 3 A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating ofs of$ A 20% decrease in fixed costs, 20% decrease in seling price, a 1056 decrease an variable cost per unit, and a 40% increase in units sold results in a new operating Compute the new breakeven point in units for requirements 5 and 6 ]ofs - units. A 10% increase in fixed costs creates a new breakeven point at Requirement 6 A 10% increase in selling price and a $20,000 increase in fixed costs creates a new breakeven point at unts

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