A producer of felt-tip pens has received a forecast demand of 30,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the fel-tip operation and variable costs are $.37 per pen.
A. Find the break-even quantity if pens sell for $1 each
B. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes?