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The Westover Compahy manufactures and solls pens Cuirenty. 5,600,000 units are sold per year at $0,50 per unh. Fxed costs ave $870,000 per year. Vumiable
The Westover Compahy manufactures and solls pens Cuirenty. 5,600,000 units are sold per year at $0,50 per unh. Fxed costs ave $870,000 per year. Vumiable costs are $030 per unit Read the requsements Requirements Consider each case soparately 1. a. What is the current annal eperating income? b. What is the current breakoven point in reverues? Compute the new operating ncome for each of Ene following changes 2. A $0 ob pet unt increase in variable costs 3. A 10% incroase in fixed costs and a 10% nctease in unis sold 4. A20\%, docrease in foud costs, a 20% deciease in selimg price, a 30% decrease in variatle cost per unit, and a 45% increase in unts sold Compute the new breakeven point in units for each of the folowing changes 5. A 10% increase in fred costs 6. A 10% increase in seling price and a $40,000 increase in fred costs
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