Question

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 $94 per unit, and variable expenses are $64 per unit. fixed expenses are $832,200 per year. the present annual sales volume (at the $94 selling price) is 25,900 units.

Answer 1

832,200 - 94 = 738.2 annual sales