Question: need help on this question Whitney Sewing and Alterations hasjust introduced a new line of alteration services for men's suits for which the company is
need help on this question


Whitney Sewing and Alterations hasjust introduced a new line of alteration services for men's suits for which the company is trying to determine an optimal selling price. Marketing studies suggest that the company can increase sales by 2,000 units for each $2 per unit reduction in the selling price. The company's current selling price is $42 per unit, and variable expenses are $26 per unit. Fixed expenses are $89,600 per year. The current annual sales volume (at the $42 selling price) is 5,000 units. Required: 1. What is the current yearly operating income or loss? (Loss amount should be indicated with a minus sign.) :l:| 2. What is the current break-even point in units and in dollar sales? Break-even point in units sales - Break-even point in total dollars sales -
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
