Assuming that estimated demand materializes

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Reference no: EM131666145

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?

Reference no: EM131666145

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