Last year Minden Company introduced a new product and sold $14,500$ units at a price of $$74$ per unit. The product's variable expenses are $$44$ per unit and its fixed expenses are $$521,400$ 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($e$.$g$.,$ $$72,$ $$70,$ 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 $3?$

$*$ 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?

$*$ Note: Do not round intermediate calculatio

Break$-$even point in units

Break$-$even point in 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($e$.$g$.,$ $$68,$ $$66,$ 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?

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Maximum annual profit

Number of units

Selling price per unit

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

Note: Do not round intermediate calculations.

Break$-$even point in units

Break$-$even point in dollar sales