Whitney Sewing And Alterations Has Just Introduced A New Line Of Alteration Serv

Whitney Sewing and Alterations has just introduced a new line of alteration services for men’s suits for which the company is trying to determine an optimal selling price. Marketing studies suggest that the company can increase sales by 2,000 units for each $2 per unit reduction in the selling price. The company’s current selling price is $33 per unit, and variable expenses are $16 per unit. Fixed expenses are $93,500 per year. The current annual sales volume (at the $33 selling price) is 5,000 units

What is the current yearly operating income or loss? (Loss amount should be indicated with a minus sign.)

Leave a Reply

Your email address will not be published. Required fields are marked *