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Several fierce competitors have entered in the pen market and prices are going down. The market for pens has now dropped to $ 0 .
Several fierce competitors have entered in the pen market and prices are going down. The market for pens has now dropped to $ per pen. Further, the company expects that it will only be able to sell pens per month. What are some alternatives they could take to reduce overall costs of producing pens?
The company wants to make $ in profit but can also lower their materials variable costs to $ per pen by using cheaper plastic. Assume all other costs to produce the pen remain the same. How many pens do they have to sell? Assume a sales price of $ per pen. How many pens do they have to sell to breakeven?
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