Last year Minden Company introduced a new product and sold $14,500$ units of it at a price of $$78$ per unit. The product's variable

expenses are $$48$ per unit and its fixed expenses are $$513,000$ 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 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($e$.$g$.,$ $$76,$

$$74,$ etc.$),$ what is the maximum annual profit that 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 in dollar sales using the selling price that you determined in requirement

$3?$

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

Required $2$

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