The McKnight Company manufactures and sells pens.? Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $1,140,000 per year. Variable costs are $0.20 per unit. Consider each case? separately: 1. a. What is the current annual operating? income? b. What is the present breakeven point in? revenues? Compute the new operating income or loss 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 10% 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 $10,000 increase in fixed costs