Last year Minden Company introduced a new product and sold $25,100$ units of it a price

of $$100$ per unit. The product's variable expenses are $$70$ per unit and its fixed expenses

are $$830,700$ 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 $$2($e$.$g$.,$ $$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?

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 $1$

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