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uestion list Question 1 The Doral Company manufactures and sells pens. Currently, 5 , 0 0 0 , 0 0 0 units are sold per
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The Doral Company manufactures and sells pens. Currently, units are sold per year at $ per unit. Fixed costs are $ per year. Variable costs are $ per unit.
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Requirements
Consider each case separately:
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:
$ per unit increase in variable costs
A increase in fixed costs and a increase in units sold
A decrease in fixed costs, a decrease in selling price, a decrease in variable cost per unit, and a increase in units sold
Compute the new breakeven point in units for each of the following changes:
A increase in fixed costs
A increase in selling price and a $ increase in fixed costs
Help me solve this
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