Last year Minden Company introduced a new product and sold $25,000$ units of it at a price of $$93$ per unit. The product's variable expenses are $$63$ per unit and its fixed expenses are $$840,000$ per year. Required: $1.$ What was this product's net operating income $($loss$)$ last year? $2.$ What is the product's break$-$even point in unit sales and dollar sales? $3.$ Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by $5,000$ units for each $$2$ reduction in its selling price. If the company will only consider price reductions in increments of $$2($e$.$g$.,$ $$68,$ $$66,$ etc.$),$ what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? $4.$ What would be the break$-$even point in unit sales and in dollar sales using the selling price that you determined in requirement $3?$ Complete this question by entering your answers in the tabs below. Required $1$ Required $2$ Required $3$ Required $4$ Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by $5,000$ units for each $$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? Show less A Maximum annual profit Number of units Selling price per unit Required $2$ Required $4$

Answer rating: 100% (QA)

1 To calculate the net operating income loss for last year we need to subtract the total variable ex... View the full answer