Business, 15.08.2020 17:01 richlovedarkwa5

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $99 per unit, and variable expenses are $69 per unit. Fixed expenses are $833,700 per year. The present annual sales volume (at the $99 selling price) is 25,700 units. 1) What is the present yearly net operating income or loss?
2) What is the present break-even point in unit sales and in dollar sales?
3) Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?
4) 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)?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 14:30, divaughn1906

The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure

Answers: 1

continue

Business, 22.06.2019 17:00, vistagallosky

Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.

Answers: 2

continue

Business, 22.06.2019 20:00, samanthasheets8925

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.

Answers: 3

continue

Business, 22.06.2019 22:00, ethanw8973

Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.

Answers: 2

continue

You know the right answer?

Minden Company introduced a new product last year for which it is trying to find an optimal selling...