Last year Minden Company introduced a new product and sold $15,000$ units at a price of $$70$ per unit. The product's variable expenses are $$40$ per unit and its fixed expenses are $$540,000$ per year.

Required:

What was this product's net operating income $($loss$)$ last year?

What is the product's break$-$even point in unit sales and dollar sales?

Assume the company 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($e$.$g$.,$ $$68,$ $$66,$ etc.$),$ what is the maximum annual profit it can earn on this product? What sales volume and selling price per unit generate the maximum profit?

What would be the break$-$even point in unit sales and dollar sales using the selling price you calculated in requirement $3?$

Complete this question by entering your answers in the tabs below.

What was this product's net operating income $($loss$)$ last year?