In 2008, ACME Company had sales of 10,000 units at $10 each, variable costs totaling $20,000, and fixed costs of $30,000. In 2009, the company expects annual insurance costs to increase by $4,000 to $9,000.
a. Calculate operating income for 2008.
b. Calculate the breakeven point in units for 2008.
c. Calculate the breakeven point in units for 2009.