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Nancy's Novelty Notebooks has forecast next year's demand to be 36,000. The notebooks are considered to incur annual fixed costs of $26,000 and per-unit variable costs of 31 cents.
a. If notebooks can be sold for $1 each, what is the break-even quantity?. (Round your answer to the next whole number.)
QBEP ___________units
b. If we assume that the forecast is correct, what should be the per-unit price of notebooks, if the company seeks to earn an annual profit of $17,000? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Price $___________
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