Last year Minden Company introduced a new product and sold25,100 units of it at...

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Accounting

Last year Minden Company introduced a new product and sold25,100 units of it at a price of $93 per unit. The product'svariable expenses are $63 per unit and its fixed expenses are$838,200 per year.
Required:
1. What was this product's net operating income (loss) lastyear?
2. What is the product's break-even point in unit sales anddollar sales?
3. Assume the company has conducted a marketing study thatestimates it can increase annual sales of this product by 5,000units for each $2 reduction in its selling price. If the companywill only consider price reductions in increments of $2 (e.g., $68,$66, etc.), what is the maximum annual profit that it can earn onthis product? What sales volume and selling price per unit generatethe maximum profit?
4. What would be the break-even point in unit sales and indollar sales using the selling price that you determined inrequirement 3?

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In: AccountingLast year Minden Company introduced a new product and sold25,100 units of it at a...Last year Minden Company introduced a new product and sold25,100 units of it at a price of $93 per unit. The product'svariable expenses are $63 per unit and its fixed expenses are$838,200 per year.Required:1. What was this product's net operating income (loss) lastyear?2. What is the product's break-even point in unit sales anddollar sales?3. Assume the company has conducted a marketing study thatestimates it can increase annual sales of this product by 5,000units for each $2 reduction in its selling price. If the companywill only consider price reductions in increments of $2 (e.g., $68,$66, etc.), what is the maximum annual profit that it can earn onthis product? What sales volume and selling price per unit generatethe maximum profit?4. What would be the break-even point in unit sales and indollar sales using the selling price that you determined inrequirement 3?