1. The product's net operating income last year was $176,000.
2. The product's break-even point is 17,500 units at $1,320,000 in dollar sales.
3. The maximum annual profit is $308,000 at a sales volume of 27,500 units with a selling price of $74 per unit.
Last year Minden Company introduced a new product and sold 14-500 unit (2).docx
1. Last year Minden Company introduced a new product and sold 14,500 units of it at a price of
$78 per unit. The product's variable expenses are $48 per unit and its fixed expenses are $520 ,
200 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. $76 , $74 , 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? 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 ? Complete this question by entering your answers in the tabs
below. What was this product's net operating income (loss) last 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 - ting study that estimates it can
increase annual sales of this product by 5,000 units each $2 reduction in its selling price. If the
ny will only consider price reductions in increments of $2 ( e .9.$76 , $74 , etc), wh) is the
maximum annual profit that it can earn oi is 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 Complete this question
by entering your answers in the tabs below. What is the product's break-even point in unit sales
and dollar sales? (Do not round intermediate calculations.) 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 conducter. Tarketing study that estimates it can
increase annual sales of this product by 5,000 units each $2 reduction in its selling price. is the
maximum annual profit that it can on this product? What sales volume and selling price per unit
generate the maximum profit? 4. What would be the break-eyen point in unit sales and in dollar
sales using the selling price that you determined in requirement 3 ? Complete this question by
entering your answers in the tabs below. 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 seling price. If the company will only consider price reductions in increments of $2 (e.9., $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? 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 rompany will only consider price reductions in increments of $2 (e.g. $76 , $74 , etc.),
what is the maximum annual profit that it can 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 ?
Complete this question by entering your answers in the tabs below. 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.)