What price must pens be sold to obtain a monthly profit

Assignment Help Operation Management
Reference no: EM13914377

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: EM13914377

Questions Cloud

Which type of machine would be chosen : With high certainty of annual demand, which type of machine would be chosen if that was an important consideration? With low certainty, which type of machine would be chosen?
Determine the range for which each alternative is best : If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?Determine the range for which each alternative is best. Are there any alternative..
Which each of the alternatives would be best : Determine the range of annual volume for which each of the alternatives would be best.
Prepare a graph that shows total monthly cost : Prepare a graph that shows total monthly cost for each plan versus daytime call minutes. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?
What price must pens be sold to obtain a monthly profit : Find the break even quantity if pens sell for $ 1 each. At what price must pens be sold to obtain a monthly profit of $ 15,000, assuming that estimated demand materializes?
At what volume of output would the two alternatives : At what volume of output would the two alternatives yield the same profit? If expected annual demand is 12,000 units, which alternative would yield the higher profit?
What volume per month is required in order to break even : What volume per month is required in order to break even? What profit would be realized on a monthly volume of 61,000 units? 87,000 units?
What design capacity would be needed to achieve : In a job shop, effective capacity is only 50 percent of design capacity, and actual output is 80 percent of effective output. What design capacity would be needed to achieve an actual output of eight jobs per week?
Would you say that systems that have higher : Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.

Reviews

Write a Review

Operation Management Questions & Answers

  What is the repair shops capacity utilization

A fleet repair facility has the capacity to repair 500 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 450 trucks per month. Last month, two of the employees were absent s..

  Letter assignment-interview thank you letter

Assume that you have recently interviewed with the company from your cover letter assignment. You feel that your initial interview went rather well, and you would like to thank your interviewer for his or her time and professionalism. However, you sh..

  What are examples of questionable payments in industry

What are examples of questionable payments in industry? If these questionable payments are part of the culture, are they now acceptable behavior for MNCs

  Research typical business plans

My assignment is to research typical business plans,and then develop your first draft of a business plan with a Title/cover page, a Table of Contents, a Mission Statement, a Business Model

  Adding a line for producing a special onion flavored

Keisler Enterprise is considering the option of adding a line for producing a special onion flavored tofu over the next year. In fact, there are 2 ways to do this. The first way is using spare capacity on an existing line and modifying the process by..

  Enable the most communication between partners

What type of channel structure will enable the most communication between partners? Why? What type of channel structure will enable the richest (most detailed, best information) communication between partners? Why? Are your answer different or the sa..

  A new oncologist has joined the medical staff since 4 west

a new oncologist has joined the medical staff. since 4 west has been the admitting unit for oncology patients in the

  Illustrate what are the key issues facing goggle at the time

Illustrate what are the key issues facing Goggle at the time this case (2010) illustrate what written and illustrate what strategic options can the company pursue to resolve these issues.

  Present a brief overview of the company

Expanding operations requires research and planning; this is especially true when dealing with crossing borders to other regions and countries. During this first project assignment, the focus is to conduct background research on your chosen compan..

  In what ways does this benefit a project

Some companies choose not to tie resources to their projects. In what ways does this benefit a project? In what ways does this hinder a project?

  Make and maintain self-managed teams effectiveness

What are the two methods to make and maintain self-managed teams' effectiveness? How do you measure team effectiveness?

  Justify the effects of detecting organizational

Justify the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd