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Find an optimal selling price

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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 $91 per unit, and variable expenses are $61 per unit. Fixed expenses are $831,900 per year. The present annual sales volume (at the $91 selling price) is 25,500 units.

Reference no: EM132896486

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