Determine the formula to calculate the breakeven point in revenues: 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 20% increase in fixed costs and a 20% increase in units sold 4. 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 breakeven point in units for each of the following changes: 5. A 20% increase in fixed costs 6. A 20% increase in selling price and a $40,000 increase in fixed costs