Problem: 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.
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 break-even point in sales dollars?
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 break-even point in sales dollars.