The Doral Company manufactures and sells pens. Currently, 5,100,000 units are sold per year at $0.50 per unit. Fixed costs are $1,140,000 per year. Variable costs are $0.20 per unit.

 

Compute the new operating income or loss for each of the following changes 2. A $0.10 per unit increase in variable costs. 3. A 20% increase in fixed costs and a 20% increase in units sold. 4. A 30% decrease in fixed costs, a 30% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold. Compute the new breakeven point in units for each of the following changes: 5. A 20% increase in fixed costs 6. A 20% increase in selling price and a $10,000 increase in fixed costs