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Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The companys present selling price is $99 per unit, and variable expenses are $69 per unit. Fixed expenses are $831,900 per year. The present annual sales volume (at the $99 selling price) is 25,200 units.

1.)

What is the present yearly net operating income or loss?

2.)

What is the present break-even point in unit sales and in dollar sales?

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