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Just part 3 and 4 narks Window Help Help Save &Exit Check my w Problem 6-19 Break-Even Analysis; Pricing [LO6-1, LO6-4, LO6-5 Minden Company introduced
Just part 3 and 4 narks Window Help Help Save &Exit Check my w Problem 6-19 Break-Even Analysis; Pricing [LO6-1, LO6-4, LO6-5 Minden Company introduced a new product last year for which it is trying to find an optimall 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 5100 per unit, and variable expenses are $70 per unit. Fixed expenses are $831,000 per year. The present annual sales volume (at the $100 selling price) is 25,100 units. 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? 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 prof? 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) Complete this question by entering your answers in the tabs below. Assuning that the marketing studies we comet, what is the masimam anseal poda chut the company can ears At how many unis and at whuz welling price per unit would dhe company generate this po? Maximum prolt Number of Seling prioe 2,770,000 C Prev 12E Next> Q Search or enter website name 2 3 4 5 6 7 8 9
Just part 3 and 4
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