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can you please show your work on how you got the answer. thank you value: 45.00 points Minden Company introduced a new product last year
can you please show your work on how you got the answer.
thank you
value: 45.00 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 $99 per unit, and variable expenses are $69 per unit Fixed expenses are $838,800 per year. The present annual sales volume (at the $9 selling price) is 25,500 units Required 1. What is the present yearly net operating income or loss? Answer is complete and correct. Net operating loss$73 800 2. What is the present break-even point in unit sales and in dollar sales? Answer is complete and correct. 27.960 Break-even point in units Break-even point in dollar 2,768,040 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? Answer is complete but not entirely correct. Maximunm 101,400 Number of units 45,500 Selling price 91 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)? Answer is complete but not entirely correct. 38.127 Break-even point in units Break-even point in dollar 3,469,582Step by Step Solution
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