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 7,400 units for each $2 reduction in the selling price. The company's present selling price is $60 per unit, and variable expenses are $38 per unit. Fixed expenses are $580,000 per year. The present annual sales volume (at the $60 selling price) is 22,000 units. Required: 1. What is the present yearly operating income or loss?

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 7,400 units for each $2 reduction in the seling price. The company's present selling price is $60 per unit, and variabie expenses ato $38 per uni. Fixed expenses are $580,000 per year. The present annuol salos volume (at the $60 selling ptice) is 22,000 units: Required: 1. What is the present yearly operating income of loss