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Last year Minden Company introduced a new product and sold 16,000 units at a price...

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Question

Accounting

Last year Minden Company introduced a new product and sold 16,000 units at a price of $76 per unit. The product's variable expenses are $46 per unit and its fixed expenses are $528,600 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 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., $74, $72, etc.), what is the maximum annual profit 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 dollar sales using the selling price you calculated in requirement 3?

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