Last year Minden Company introduced a new product and sold $25,400$ units of it at a price of $$98$ per unit. The product's variable expenses are $$68$ per unit and its fixed expenses are $$832,800$ per year.

Required:

What was this product's net operating income $($loss$)$ last year?

What is the product's break$-$even point in unit sales and dollar sales?

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?

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.

Required $2$

Requ$$red $3$

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?

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Maximum annual profit

Number of units

Selling price per unit