Last year Minden Company introduced a new product and sold $25,100$ units of it at a price of $$99$ per unit. The product's variable expenses are $$69$ per unit and its fixed expenses are $$830,400$ per year.

Required:

$1.$ What was this product's net operating income $($loss$)$ last year?

$2.$ What is the product's break$-$even point in unit sales and dollar sales?

$3.$ Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by $5,000$ units for each $$2$ reduction in its selling price. If the company will only consider price reductions in increments of $$2($e$.$g$.,$ $$68,$ $$66,$ etc.$),$ what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit?

$4.$ What would be the break$-$even point in unit sales and in dollar sales using the selling price that you determined in requirement $3?$

$-$what was this product's net operating income $($loss$)$ last year?

$-$What is the product's break$-$even point in unit sales and dollar sales? $($Do not round intermediate calculations.$)$

Break$-$even point in units

Break$-$even point in dollar sales

$-$Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by $5,000$ units for each $$2$ reduction in its selling price. If the company will only consider price reductions in increments of $$2($e$.$g$.,$ $$68,$ $$66,$ etc.$),$ what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit?

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Maximum annual profit

Number of units

Selling price per unit

$-$What would be the break$-$even point in unit sales and in dollar sales using the selling price that you determined in requirement $3?($Do not round intermediate calculations.$)$

Break$-$even point in units

Break$-$even point in dollar sales

Answer rating: 100% (QA)

To calculate the requested values lets go step by step 1 Net Operating Income Loss Last Year Net operating income loss is calculated as the difference ... View the full answer