Detmer Holdings AG of Zurich, Switzerland, has just introduced a new fashion watch for which the company is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each SFr2 per unit reduction in the selling price. (SFr2 denotes 2 Swiss francs.) The companys present selling price is SFr90 per unit, and variable expenses are SFr60 per unit. Fixed expenses are SFr840,000 per year. The present annual sales volume (at the SFr90 selling price) is 25,000 units. [NEED HELP ON QUESTION 3 and 4]

Required: 1. What is the present yearly net operating income or loss? Net operating loss SFr 90,000 2. What is the present break-even point in units and in Swiss franc sales? Break-even point in units Break-even point in Swiss franc sales SFr 28,000 94