Question: i put the sections 1 & 2 with my question for background info and i know the math is correct. i need help on sections




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 $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $834,600 per year. The present annut sales volume (at the $94 selling price) is 25,500 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the present yearly net operating income or loss? Net operating loss $(69,600) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the present break-even point in unit sales and in dollar sales? (Do not round intermediatec Break-even point in units Break-even point in dollar sales 27,820 2,615,080 $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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? Maximum annual profit Number of units Selling price per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What would be the break-even point in unit sales and in dollar sales using the selling price you determined in Required (3) (e.g., the selling price at the level of maximum profits)? (Do not round intermediate calculations.) Break-even point in units Break-even point in dollar sales
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
