SOLVED : articlewritingcafe.net – Find the break-even quantity if pens sell for $1 each./2022

SOLVED : articlewritingcafe.net –

A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month

from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 37 cents per pen.

a. Find the break-even quantity if pens sell for $1 each.

b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated

demand materializes?