The 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.

A computation of your breakeven analysis. The use of management tools such as breakeven analysis.