Minden Company introduced a new product last year for which it is trying to find

Question

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 $91 per unit, and variable expenses are $61 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $91 selling price) is 25,900 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? Break-even point in units Break-even point in dollar sales

Explanation / Answer

Minden Company introduced a new product last year for which it is trying to find

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