The O'Reilly Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $870,000 per year. Variable costs are $0.30 per unit. Read the equirements Requirement 1. What is the current annual operating income? (a) Start by determining the formula to calculate operating income. )1- Operating income $870,000 per ctures - X Requirements Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? current ormula t 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 cpsts, a 30% decrease in selling price, a 20% 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 10% increase in fixed costs A 10% increase in selling price and a $40,000 increase in fixed costs 6. Print Done own list ar Clear All Check