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The selling price for a felt tip pen is $1. Fixed cost of the operation is $25,000 per month and variable cost is .50 cents
The selling price for a felt tip pen is $1. Fixed cost of the operation is $25,000 per month and variable cost is .50 cents per pen.
1) Find the break-even quantity
2) What is the break-even point in sales dollars?
c) 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 break-even point in sales dollars.
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