The McKnight Company manufactures and sells pens. Cumenty 5,600,000 units are sold per year at $0.50 per unit Faxed confare $910,000 per year. Variable costs are 50.30-pir unit. Desamine the formue to oculate the breakeven point in revenues The sent taken pont in reven ingri von 2275.000 Campus the new spating incone to requeris 24 Requirement 2 A30. 10 per intrase in vari contents in a new operating Requirement 3 A3% in dats and a 10% inonase units sold nuts in a new operating 0000 X nufactures and sells pens. C Keven point in revenues lculate the breakeven point in Selling pr it in revenues equal $ income for requirements 2 t variable costs results in a ne Requirements Consider each case separately: 1. a. What is the current annual operating income? b. What is the current 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 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 30% decrease in fixed costs, a 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 35% increase in units sold 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 ts and a 10% increase in unt Print Done costs are $0.30 per unit