The estimated demand materializes

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A producer of felt tip pens has received a forecast of demand of 39,000 pens for the coming month from its marketing department. fixed cost of $$33,000 per month are allocated to the felt-tip operation and variable costs are 38 cents per pen.

Find the break-even quantity if pens sell for $3 each.

At what price must pens be sold to obtain a monthly profit of $14,000, assuming that the estimated demand materializes.

Reference no: EM132240148

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