The Morrison Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit Fixed costs are $950,000 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 Units sold Selling price The current annual operating income is $50,000 (b) What is the current breakeven point in revenues? Variable costs 1- Fixed costs Operating income Determine the formula to calculate the breakeven point in revenues Selling price Breakeven units Breakeven revenues The current breakeven point in revenues equal 264000