Hi, I am working on this problem and I cannot figure it out. I know what the answer is, but I don't know how to get there. 3-20 CVP exercises. 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. Consider each case separately: 4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold 3.

Inc Stmt - Increase in Fixed Costs & Increase in Units Sold Given Info

Units Sold 5,500,000

Selling Price 0.50

Fixed Costs 990,000

VC Per Unit 0.30

Income Statement:

Sales

Variable Costs

Contribution Margin

Fixed Costs

Net Income