The Garret Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $910,000 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. X Requirements * ( ) ]- = Operating income The current annual operating income is Consider each case separately: 1. a. What is the current annual operating income? (b) What is the current breakeven point in revenues? b. What is the current breakeven point in revenues? Determine the formula to calculate the 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 x = Breakeven revenues 3. A 10% increase in fixed costs and a 10% increase in units sold 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 The current breakeven point in revenues equal Compute the new breakeven point in units for each of the following changes: Compute the new operating income for requirements 2 through 4. 5. A 10% increase in fixed costs 6. A 10% increase in selling price and a $10,000 increase in fixed costs Requirement 2. A $0.10 per unit increase in variable costs results in a new operating of Requirement 3. Print Done A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating of Requirement 4. A 30% decrease in fixed costs, 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 45% increase in units sold results in a new operating of Calculator Time Remaining: 02:53:43 NextThe Garret Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $910,000 per year. Variable costs are $0.30 per unit. Read the requirements. (b) What is the current breakeven point in revenues? Determine the formula to calculate the breakeven point in revenues. - X = Breakeven revenues Requirements The current breakeven point in revenues equal Consider each case separately: 1. Compute the new operating income for requirements 2 through 4. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Requirement 2. Compute the new operating income for each of the following changes: A $0.10 per unit increase in variable costs results in a new operating of 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. Requirement 3. 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 A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating of Compute the new breakeven point in units for each of the following changes: 5. A 10% increase in fixed costs Requirement 4. 6. A 10% increase in selling price and a $10,000 increase in fixed costs A 30% decrease in fixed costs, 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 45% increase in units sold results in a new operating of Compute the new breakeven point in units for requirements 5 and 6. Print Done Requirement 5. A 10% increase in fixed costs creates a new breakeven point at units . Requirement 6. A 10% increase in selling price and a $10,000 increase in fixed costs creates a new breakeven point at units. Calculator Time Remaining: 02:53:29 Next