The vice-president of marketing, Susan Wilson, thinks that her firm can increase sales by 16,000...
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The vice-president of marketing, Susan Wilson, thinks that her firm can increase sales by 16,000 units for each $5-per-unit reduction in its selling price. The company's current selling price is $90 per unit and variable costs are $54 per unit. Fixed costs are $936,000 per year. The current sales volume is 39,000 units. Answer the following questions: Your answer is correct. What is the current yearly operating income? Operating income $ eTextbook and Media Your answer is correct. What is the current break-even point in units and in dollar sales? (Round contribution margin ratio to 2 decimal places, e.g. 15.25\% and final answers to 0 decimal places, e.g. 125.) eTextbook and Media Assuming that Susan is correct, what is the maximum operating income that the firm could generate yearly? At how many units and at what selling prices per unit would this operating income be generated? Assume that capacity is not a problem and total fixed costs will be the same regardless of volume. eTextbook and Media What would be the break-even points in units and in dollar sales using the selling prices you have determined
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