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A producer of pencils has received a forecast of demand of 30,000 pencils for the coming month. Fixed cost of $25,000 per month are allocated
A producer of pencils has received a forecast of demand of 30,000 pencils for the coming month. Fixed cost of $25,000 per month are allocated to the operation and variable costs are $0.37 per pencil. a) Find the break even quantity if pencils sell for $1 each b) At what price must pencils be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes
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