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_ast year Minden Company introduced a new product and sold 16,000 units of it at a price of $80 per unit. The product's variable expenses
_ast year Minden Company introduced a new product and sold 16,000 units of it at a price of $80 per unit. The product's variable expenses are $50 per unit and its fixed expenses are $525,000 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., \$78, \$76, etc.), what s the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum orofit? 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
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