SOLUTION: A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to t
Algebra.Com
Question 1118079: A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 27 cents per pen.
Find the break-even quantity if pens sell for $4 each. (Round your answer to the next whole number.)
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department.
Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 27 cents per pen.
Find the break-even quantity if pens sell for $4 each. (Round your answer to the next whole number.)
:
let q = break-even qty
4q = .27q + 25000
4q - .27q = 25000
3.73q = 250000
q = 25000/3.73
q = 6,203 pens to break even
RELATED QUESTIONS
A man ordered 3 times as many boxes of ballpoint pens as boxes of felt-tip pens.... (answered by josgarithmetic)
A man ordered 4 times as many boxes of ballpoint pens as boxes of felt-tip pens.... (answered by ikleyn)
A man orders 3 times as many as ball point pins as boxes as felt tip pens. ball point... (answered by stanbon)
A number of teachers were to receive 6 pens each but needed 4 more pens for them to be... (answered by ikleyn,Theo)
A student buys some pens for 400$. If the cost of each pens is 9$ less, he can buy 9 pens (answered by josmiceli)
Mark sold x pens for $2 each. He received less than $80 from the sale. Find the greatest... (answered by ikleyn)
I know the answer to the problem, 8 boxes of ball points and 4 boxes of felt tips, but I... (answered by checkley77)
A pack of pens contains 24 pens. Abox contains 175 packets. How many pens in... (answered by Cromlix)
Ron buys pens from a store. 3 packs of blue pens cost $22.50 and 4 packs of black pens... (answered by stanbon)