The selling price for a type of felt-tip pen is $1 per pen. Fixed cost of the
Question:
The selling price for a type of felt-tip pen is $1 per pen. Fixed cost of the operation is $25,000 per month and variable cost is 50 cents per pen.
a. Find the break-even quantity.
b. How many pens must be sold to obtain a monthly profit of $15,000?
c. What is the BEP$?
d. Another type of marker with the following characteristics can also be produced by the machine: Selling price= $2 each, Variable cost= $0.75 each, and Proportion of revenue= 30%. Calculate the BEP$.
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R 1 per pen FC 25000 per month v 50pen a b c Q BEP F...View the full answer
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