Problem 5-19 (Algo) Break-Even Analysis; Pricing (L05-1, LO5-4, LO5-5) Last year Minden Company introduced a new product and sold 26,000 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $830,400 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. $68, $66, etc.), what is the moximum annual profit that it can earn on this product? What sales volume and selling price per 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? 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 estimate each $2 reduction in its selling price. If the company will only consider is the maximum annual profit that it can earn on this product? What sale profit? 4. What would be the break-even point in unit sales and in dollar sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What was this product's net operating income (loss) last year? Hoga Requires 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 each $2 reduction in its selling price. If the company will only consider price is the maximum annual profit that it can earn on this product? What sales vo profit? 4. What would be the break-even point in unit sales and in dollar sales using Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the product's break-even point in unit sales and dollar sales? (Do not rou Break-even point in units Break-even point in dollar sales 1. THE WOS HD VUULLOHICLOPCITY HILUHTC 033) 15. yCoi: 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 each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g. $68, $66, et is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maxi profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirem Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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? Show less Maximum annual profit Number of units Selling price per unit Requirea: 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 each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit g 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. Required 1 Required 2 Required 3 Required 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? (Do not round intermediate calculations.) Break-even point in units Break-even point in dollar sales
