(Solved by Humans)-PROBLEM 3-21_______________________________________________________________ The Doral Company...
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PROBLEM 3-21_______________________________________________________________ The Doral Company manufactures and sells pens. Currently, 5,000,000 units are manufactured per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit. Required: Consider each case separately: 1. a. What is the present operating income for a year? b. What is the present breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.04 per unit increase in variable costs 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable costs per unit, and a 40% 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
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This question was answered on: 10 May, 2025
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