Question: whats the answer to Maximum profit = ? Number Units = 45,000 Selling Price = $58 read below and answer Maximum profit = ? Minden

whats the answer to Maximum profit = ?

Number Units = 45,000

Selling Price = $58

read below and answer Maximum profit = ?

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 companys present selling price is $70 per unit, and variable expenses are $40 per unit. Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price) is 15,000 units.

Required:
1.	What is the present yearly net operating income or loss?

Answer :

Net Operation Loss $90,000

What is the present break-even point in unit sales and in dollar sales?

Answer:

Break- even point units 18,000

Break -even point sales $1260000

NEED Assistance on maximum profit

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?

What's the answer

Maximum profit = ?

Number Units = 45,000

Selling Price = $58

Answer:

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)?

Break- even point units 18,000 = 30,000

Break- even point sales $1260000 =$1740,000

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