Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A producer of felt-tip pens has received a forecast of demand of 36,000 pens for the coming month from its marketing department. Fixed costs of

image text in transcribed

A producer of felt-tip pens has received a forecast of demand of 36,000 pens for the coming month from its marketing department. Fixed costs of $26,000 per month are allocated to the felt-tip operation, and variable costs are 31 cents per pen. Find the break-even quantity if pens sell for $1 each. (Round your answer to the next whole number.) Q_BEP 7046 units At what price must pens be sold to obtain a monthly profit of $17,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $ _______

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions