The Stapleton Company manufactures and sells pens. Currently, 5, 100,000 units are sold per year at $0.60 per unit. Fixed costs are $860,000 per year. Variable cost are $0.40 per unit. What is the current annual operating income? Start by determining the formula to calculate operating income. [Units sold times (Selling price - Variable costs)]- Fixed costs = Operating income The current annual operating income is $. Consider each case separately: What is the current annual operating income? What is the current breakdown point in revenues? Compute the new operating income or loss for each of the following changes: A $0.06 per unit increase in variable costs. A 20% increase in fixed costs and a 20% increase in units sold A 40% decrease in fixed costs, a 40% decrease in selling price, a 30% decrease in variable cost per unit, and a 35% increase in units sold Compute the new breakdown point in units for each of the following changes: A 20% increases in fixed costs A 20% increase in selling price and a $20,000 increase in fixed costs