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The St. John Company manufactures and sells pens. Currently, 5.200,000 units are sold per year at $0.50 per unit. Foed costs are $900.000 per year Variable costs we $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. >] Operating income Choose from any drop-down list and then click Check Answer 8 Check Answer parts remaining Clear All hop esc 8 + a 2 3 4 5 6

Jul Juul JO.Ju per unit. Fixed costs are $900,000 per year. Variable costs are $0. i Requirements - X 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 $0.08 per unit increase in variable costs 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 30% decrease in fixed costs, a 30% decrease in selling price, a 20% decrease in variable cost per unit, and a 35% 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 $20,000 increase in fixed costs Print Done Clear All