Business, 27.03.2020 00:27 sanociahnoel
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $70 per unit, and variable expenses are $40 per unit. Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price) is 15,000 units. Required:1. What is the present yearly net operating income or loss?2. What is the present break-even point in unit sales and in dollar sales?3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e. g., the selling price at the level of maximum profits)?
Answers: 2
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Business, 22.06.2019 19:30
About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.
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Minden Company introduced a new product last year for which it is trying to find an optimal selling...
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