What is our projected profit or loss for month on these pens

Assignment Help Operation Management

Reference no: EM131440100

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.

Suppose demand turns out to be 30,000 units, and the selling price is $1 per pen as originally stated in the problem. What is our projected profit or loss for the month on these pens? Should we make the pens? (Assume the fixed cost of $25,000 is an overhead allocation that does not go away even if we don't produce any pens.)

Reference no: EM131440100

Questions Cloud

What are your thoughts about the inclusion : Answer the following questions: What are your thoughts about the inclusion of this condition? Why do you think it took so long (over 50 years) to be official recognized

Cumulative data from the ipmr : Using the cumulative data from the IPMR below for WBS 1.1.5, calculate a formula-based estimate at completion (EAC) using the performance factor of cost performance index times schedule performance index, or CPI x SPI. (Note: use 3 decimal places ..

The vulnerability associated with the asset or policy : In this phase, you will choose either Aircraft Solutions or Quality Web Design as the company you will work with. The scenarios are in Doc Sharing in the Course Project select area. You will then identify potential security weaknesses.

Calculate the maturity risk premium : Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.50 percent per year. Calculate the maturity risk premium on the 2-year Treasury security.

What is our projected profit or loss for month on these pens : 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. What i..

What the independent and dependent variables of this study : Instructions: Hypothesis: RT will be significantly faster for the normal relative to the Stroop Interference condition. What are the Independent and Dependent Variables of this study

Explain the difference between the two standards : The SAS 70 standard was replaced by a new standard in June of 2011. Please research the new standard published by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA). Write at least a two page report expl..

Explain religious practice that could easily be accommodated : Describe and explain the at least 2 religious practices that could easily be accommodated by management without any hardship for the company.

Determine the best possible pricing strategy : Determine the best possible pricing strategy for at least one of the products or services offered by kaiser permanente. Determine the key characteristics of the users of the products and/or services of kaiser peprmanente.

User Account

All Pages