Last year Minden Company introduced a new product and sold 14,500 units of it at a price of $72 per unit. The product's variable expenses are $42 per unit and its fixed expenses are $521,400 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. 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. $70, $68, etc.). what is the maximum annual profit that it can earn on this product? What sales volume and selling price por unit generate the maximum profit? 4. 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. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this for each $2 reduction in its selling price. If the company will only consider price reductions in increments of what is the maximum annual profit that it can earn on this product? What sales volume and selling price per maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you detern Complete this question by entering your answers in the tabs below. What is the product's break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Tor eacn $ reauction in its seiling price. it the company wiII oniy consiaer price reauctions in incre what is the maximum annual profit that it can earn on this product? What sales volume and selling maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that y Complete this question by entering your answers in the tabs below. Assume the company has conducted a marketing study that estimates it can increase annual sales of th units for each $2 reduction in its selling price. If the company will only consider price reductions in incre $68,$66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume unit generate the maximum profit? for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determine Complete this question by entering your answers in the tabs below. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? (Do not round intermediate calculations.)
