The St. John 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 Requirement 1 . What is the current annual operating income? (a) Start by determining the formula to calculate operating income. Operating income 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 \\( \\$ 0.05 \\) per unit increase in variable costs 3. A \10 increase in fixed costs and a \10 increase in units sold 4. A \20 decrease in fixed costs, a \20 decrease in selling price, a \30 decrease in variable cost per unit, and a \45 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 \\( \\$ 40,000 \\) increase in fixed costs