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The Westover 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
The Westover 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 requirements Requirement 1. What is the current annual operating income? (a) Start by determining the formula to calculate operating income x ( Operating income The current annual operating income is $ (b) What is the current breakeven point in revenues? Determine the formula to calculate the breakeven point in revenues. - Breakeven revenues The current breakeven point in revenues equal $ Compute the new operating income for requirements 2 through 4. Requirement 2. A $0.08 per unit increase in variable costs results in a new operating of $ Requirement 3 A 10% increase in fixed costs and a 10% increase in untis sold results in a new operating Requirement 4. A 40% decrease in fixed costs, 40% decrease in selling price, a 30% decrease in variable cost per unit, and a 45% increase in units sold results in a new operating Compute the new breakeven point in units for requirements 5 and 6. Requirement 5. A 10% increase in fixed costs creates a new breakeven point at Requirement 6. A 10% increase in selling price and a $40,000 increase in fixed costs creates a new breakeven point at of$ of $ -]units. units Choose from any list or enter any number in the input fields and then continue to the next
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