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Doral Company - Operating Income/Breakeven

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The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit.

a)What is the present operating income for a year?
b)What is the present breakeven point in revenues?

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Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

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The present operating income for a year can be calculated as follows: -

Revenue (5,000,000 units x ...

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