asked 209k views
3 votes
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.

asked
User ApenasVB
by
8.2k points

1 Answer

3 votes
832,200 - 94 = 738.2 annual sales
answered
User Abhishek Keshri
by
8.5k points
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