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5. value: 10.00 points Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies
5. value: 10.00 points 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 $90 per unit, and variable expenses are $60 per unit. Fixed expenses are $832,800 per year. The present annual sales volume (at the $90 selling price) is 25,200 units. Required: 1. What is the present yearly net operating income or loss? et operating loss $ 76,800 2. What is the present break-even point in unit sales and in dollar sales? Break-even point in units 27,760 Break-even point in dollar sales 2,498,400
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