Business, 24.06.2021 20:00 ethanm2685

Minden company introduced a new product last year for which it is trying to find an optimal selling priec. marketing studies suggegst that the company can increase sales by 5000 units ofr each 2 reuction in the selling price. the companys present sellng price is 70 per unit, and variable expenses are $69 per unit. Fixed expenses are $837,000 per year. The present annual sales volume (at the $99 selling price) is 25.300 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)?

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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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