Question
need the answer to Maximum Profit. Minden Company introduced a new product last year for which it is trying to find an optimal selling price.
need the answer to Maximum Profit.
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 $70 per unit, and variable expenses are $40 per unit. Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price) is 15,000 units. |
Required: | |
1. | What is the present yearly net operating income or loss? |
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Answer :
Net Operation Loss $90,000
2. | What is the present break-even point in unit sales and in dollar sales?
Answer: Break- even point units 18,000 Break -even point sales $1260000
NEED Assistance on maximum profit
What's the answer Maximum profit = ? Number Units = 45,000 Selling Price = $58
Answer: 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?
Break- even point units 18,000 = 30,000 Break- even point sales $1260000 =$1740,000 | ||||
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