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. varianle cost ar 30 per unit What is the current annual operating income? What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.04 per unit increase in variable costs 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 10% decrease in variable cost per unit, and a 40% increase in units s 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 Current Situation Given Info 3. Inc Stmt - Increase in Fixed Costs & Increase in Units Sold Given Info Units Sold Selling Price Fixed Costs VC Per Unit Units Sold Selling Price Fixed Costs VC Per Unit 1A Current Income Statement Income Statement Sales Variable Costs Contribution Margin Fixed Costs Net Income Sales Variable Costs Contribution Margin Fixed Costs Net Income 2. Inc Stmt - Increase in VC Given Info 4. Income Statement - Multiple Changes Given Info Units Sold Selling Price Fixed Costs VC Per Ur Units Sold Selling Price Fixed Costs VC Per Unit Income Statement Income Statement Sales Variable Costs Contribution Margin Fixed Costs Net Income Sales Variable Costs Contribution Margin Fixed Costs Net Income