Please answer requirement 2,3,4 Last year Minden Company Introduced a new product and sold 25,300 units of it at a price of $94 per unit. The product's variableexpenses are $64 per unit and its fixed expenses are $830,400 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 foreach $2 reduction in its selling price. If the company will only consider price reductions in Increments of $2 (eg.. $68. $66, etc.), whatis the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximumprofit?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?

A company may easily determine if it is making a profit or losing money by comparing its actual…

Answered: Last year Minden Company Introduced a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 35P

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