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What is maximum annual profits

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Reference no: EM132885166

Problem - Last year Fauci ltd introduced a new product and sold 25000 units of the price $92 per unit. The product variable expenses are $62 per unit and fixed expenses are $835800 per year.

Assuming that the company has conducted a marketing study that can increase annual sales of this product by 5000 units for $2 reduction in its selling price. If the company will only consider price reductions in increments of $2.

What is maximum annual profits? number of units? selling price? Break-even point in sales? Break-even point in dollar sales?

Reference no: EM132885166

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