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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 esti- mated demand materializes?

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 esti- mated demand materializes?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 esti- mated demand materializes? |南 5.
Transcribed Image Text: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 esti- mated demand materializes? |南 5.
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