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y het operating income to increase? en connect PRC PROBLEM 6-19 Minden Compa Marketing studies si 6-19 Break-Even Analysis: Pricing LOG-1. LOG-4. LO6-5 Company introduced

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y het operating income to increase? en connect PRC PROBLEM 6-19 Minden Compa Marketing studies si 6-19 Break-Even Analysis: Pricing LOG-1. LOG-4. LO6-5 Company introduced a new product last last year for which it is trying to find an optimal selling price. studies suggest that the company can increase sales by 5.000 units for each S2 TCO ng price is $70 per unit and variable expenses are SAD per Lixed expenses are $390. per year. The present annual sales volume at the $70 selling price the selling price. The company's D unit. Fixed 15.000 units. Required: 1. What is the 2 What is the prese What is the present yearly net operating income or loss? hat is the present break-even point in unit sales and in dollar sales? Assuming that the marketing studies are correct, what is the maximum annual profit that the company an earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be 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)? Why is this break- ven point different from the break-even point you computed in (2) above? BERAG20 CVD Alicati

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